Calix Inc (CALX)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 377,924 | 521,277 | 432,399 | 322,807 | 274,220 |
| Inventory | US$ in thousands | 102,727 | 132,985 | 149,160 | 88,880 | 52,268 |
| Inventory turnover | 3.68 | 3.92 | 2.90 | 3.63 | 5.25 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $377,924K ÷ $102,727K
= 3.68
Calix Inc's inventory turnover has varied over the past five years. In 2020, the inventory turnover ratio was 5.25, indicating that the company's inventory turned over approximately 5.25 times during that year. This suggests that Calix was efficiently managing its inventory levels and quickly converting inventory into sales.
However, in 2021, the inventory turnover ratio decreased to 3.63, and further declined to 2.90 in 2022. These lower ratios may indicate potential issues with inventory management, such as overstocking, slow-moving inventory, or declining sales relative to inventory levels.
There was a slight improvement in 2023, with the inventory turnover ratio increasing to 3.92, and then slightly dropping to 3.68 in 2024. Despite these improvements, the ratios remain below the 2020 levels, indicating that Calix may still be facing challenges in optimizing its inventory turnover efficiency.
Overall, Calix Inc should closely monitor its inventory turnover ratios and take appropriate actions to improve inventory management practices, streamline operations, and enhance overall efficiency in converting inventory into sales.
Peer comparison
Dec 31, 2024