Benchmark Electronics Inc (BHE)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	2,567,906	2,626,073	2,680,280	2,683,352	2,631,096	2,523,577	2,336,929	2,164,405	2,049,418	1,949,009	1,910,429	1,869,974	1,878,083	1,878,625	1,905,302	2,001,387	2,082,567	2,216,393	2,301,812	2,359,476
Inventory	US$ in thousands	683,801	725,349	756,391	778,137	727,749	746,920	666,742	608,347	523,240	478,325	415,322	355,164	327,377	352,851	363,665	338,437	314,956	315,835	316,237	315,563
Inventory turnover		3.76	3.62	3.54	3.45	3.62	3.38	3.50	3.56	3.92	4.07	4.60	5.27	5.74	5.32	5.24	5.91	6.61	7.02	7.28	7.48

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,567,906K ÷ $683,801K
= 3.76

Inventory turnover is an important efficiency ratio that measures how quickly a company is able to sell its inventory over a specific period. For Benchmark Electronics Inc., the inventory turnover ratio has shown a relatively stable performance over the last eight quarters, ranging from a low of 3.38 in Q3 2022 to a high of 3.76 in Q4 2023.

The average inventory turnover ratio for Benchmark Electronics Inc. over the last eight quarters is approximately 3.55. This indicates that, on average, the company sells and replaces its inventory about 3.55 times per year. A higher inventory turnover ratio generally suggests that the company is efficiently managing its inventory levels and turning over inventory quickly, which can be a sign of strong sales performance and effective inventory management.

Benchmark Electronics Inc.'s inventory turnover ratio trend indicates a consistent ability to sell its inventory efficiently. However, it would be beneficial to compare this ratio with industry benchmarks to assess the company's performance relative to its peers and identify any areas for improvement in inventory management practices.