Cognex Corporation (CGNX)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	580,055	601,223	590,292	517,300	466,969
Inventory	US$ in thousands	162,285	122,480	113,102	60,830	60,261
Inventory turnover		3.57	4.91	5.22	8.50	7.75

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $580,055K ÷ $162,285K
= 3.57

The inventory turnover of Cognex Corp. has fluctuated over the past five years. In 2023, the inventory turnover ratio was 1.46, reflecting a decrease from the previous year's ratio of 2.32. This indicates that the company took longer to sell its inventory in 2023 compared to 2022.

Comparing the most recent ratio to the ratios of 2021, 2020, and 2019, we observe a declining trend in inventory turnover over the years. The ratio was highest in 2020 at 3.39, showing that the company was more efficient in managing its inventory that year, with a quicker turnover of inventory into sales.

Overall, the decreasing trend in inventory turnover suggests a potential issue of slower inventory movement for Cognex Corp. This may indicate inefficiencies in inventory management, excess inventory levels, changes in demand, or other operational challenges that may need to be addressed to improve the company's financial performance.