Cognex Corporation (CGNX)

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 677,452 650,322 619,128 599,507 578,569 1,023,645 1,019,625 1,031,466 1,050,568 604,262 634,333 621,515 588,446 436,371 397,744 399,845 384,175 503,725 491,645 463,481
Inventory US$ in thousands 157,527 155,278 157,255 170,871 162,285 133,866 126,226 127,147 122,480 108,553 96,012 136,660 113,102 81,170 68,503 61,392 60,830 53,860 52,953 54,985
Inventory turnover 4.30 4.19 3.94 3.51 3.57 7.65 8.08 8.11 8.58 5.57 6.61 4.55 5.20 5.38 5.81 6.51 6.32 9.35 9.28 8.43

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $677,452K ÷ $157,527K
= 4.30

Inventory turnover measures how many times a company's inventory is sold and replaced over a specific period. For Cognex Corporation, the inventory turnover fluctuated over the analyzed period, starting at 8.43 times as of March 31, 2020, and reaching a peak of 9.35 times by September 30, 2020. However, the turnover ratio decreased to 3.57 times by December 31, 2023, which indicates a longer period for inventory to be sold and replaced.

The company's inventory turnover improved slightly by March 31, 2024, reaching 3.51 times. This uptick continued with turnover ratios of 3.94 times by June 30, 2024, 4.19 times by September 30, 2024, and 4.30 times by December 31, 2024.

Overall, the downward trend in inventory turnover from 2020 to 2023 may suggest inventory management issues or changing sales patterns. However, the recent uptick in the inventory turnover from 2024 shows potential improvements in managing inventory levels efficiently. Monitoring further trends in inventory turnover will be crucial for assessing Cognex Corporation's inventory management effectiveness and operational efficiency.