Calix Inc (CALX)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 836,236 | 683,223 | 503,709 | 419,135 | 358,547 |
| Inventory | US$ in thousands | 132,985 | 149,160 | 88,880 | 52,268 | 40,153 |
| Inventory turnover | 6.29 | 4.58 | 5.67 | 8.02 | 8.93 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $836,236K ÷ $132,985K
= 6.29
The inventory turnover ratio for Calix Inc has shown fluctuations over the past five years. The ratio indicates how efficiently the company is managing its inventory by measuring the number of times the inventory is sold and replaced during a specific period.
In 2023, the inventory turnover ratio was 3.92, which suggests that Calix Inc converted its inventory into sales approximately 3.92 times during the year. This represents an improvement from the previous year when the ratio was 2.90. The increase in the ratio indicates that the company is managing its inventory more effectively in 2023 compared to 2022.
However, when comparing the 2023 ratio to earlier years, such as in 2019 and 2020, where the ratios were 5.25 and 5.89 respectively, it is evident that Calix Inc was more efficient in managing its inventory in those years. The decline in the inventory turnover ratio from 2019 to 2023 may indicate that the company is holding onto its inventory for a longer period before selling it, which could tie up capital and impact profitability.
Overall, the inventory turnover ratio for Calix Inc has fluctuated over the past five years, and it is essential for the company to address any inefficiencies in inventory management to improve its financial performance in the future.
Peer comparison
Dec 31, 2023