Calix Inc (CALX)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 377,924 | 435,898 | 468,286 | 502,296 | 520,520 | 489,408 | 483,884 | 461,200 | 432,399 | 397,966 | 362,942 | 340,131 | 322,807 | 318,632 | 310,427 | 293,994 | 274,220 | 258,688 | 248,438 | 241,456 |
| Inventory | US$ in thousands | 102,727 | 100,609 | 113,484 | 119,782 | 132,985 | 150,033 | 153,394 | 156,513 | 149,160 | 141,116 | 98,324 | 105,016 | 88,880 | 75,166 | 77,136 | 72,211 | 52,268 | 41,616 | 36,659 | 30,539 |
| Inventory turnover | 3.68 | 4.33 | 4.13 | 4.19 | 3.91 | 3.26 | 3.15 | 2.95 | 2.90 | 2.82 | 3.69 | 3.24 | 3.63 | 4.24 | 4.02 | 4.07 | 5.25 | 6.22 | 6.78 | 7.91 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $377,924K ÷ $102,727K
= 3.68
Calix Inc's inventory turnover has shown a declining trend over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times a company sells and replaces its inventory within a specific period.
The inventory turnover ratio decreased from 7.91 on March 31, 2020, to 3.68 on December 31, 2024. This decline indicates that Calix Inc took longer to sell through its inventory in the later periods, which could be a sign of potential issues such as overstocking, slowing sales, or obsolete inventory.
A decreasing trend in inventory turnover can tie up resources in excess inventory, lead to higher holding costs, and indicate possible inefficiencies in inventory management. Companies should strive to strike a balance between having enough inventory to meet demand without excessive carrying costs.
Calix Inc might need to reassess its inventory management strategies, such as optimizing inventory levels, improving demand forecasting, and implementing efficient supply chain practices to enhance inventory turnover and overall operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024