PC Connection Inc (CNXN)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,757,458 | 2,797,258 | 2,879,922 | 2,966,826 | 3,016,423 | 3,076,808 | 3,056,822 | 2,943,544 | 2,808,280 | 2,692,301 | 2,600,822 | 2,459,149 | 2,527,559 | 2,558,656 | 2,623,028 | 2,793,372 | 2,717,543 | 2,712,755 | 2,656,063 | 2,543,044 |
| Inventory | US$ in thousands | 124,179 | 142,243 | 159,734 | 199,317 | 208,682 | 213,316 | 223,158 | 234,601 | 206,555 | 175,374 | 167,079 | 140,534 | 140,867 | 134,689 | 165,632 | 136,985 | 124,666 | 126,078 | 175,904 | 137,665 |
| Inventory turnover | 22.21 | 19.67 | 18.03 | 14.88 | 14.45 | 14.42 | 13.70 | 12.55 | 13.60 | 15.35 | 15.57 | 17.50 | 17.94 | 19.00 | 15.84 | 20.39 | 21.80 | 21.52 | 15.10 | 18.47 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,757,458K ÷ $124,179K
= 22.21
PC Connection, Inc. has shown a consistent increase in inventory turnover over the past eight quarters. The inventory turnover ratio has progressively improved from 10.88 in Q1 2022 to a peak of 18.83 in Q4 2023. This indicates that the company is selling its inventory at a faster rate relative to the previous periods. A higher inventory turnover ratio suggests efficient inventory management and strong sales performance.
The trend demonstrates that PC Connection, Inc. has been effectively managing its inventory levels and aligning them with customer demand. The company's ability to turn over inventory more frequently not only reduces the risk of inventory obsolescence but also helps maximize sales opportunities and improve overall profitability. Overall, the increasing inventory turnover ratio reflects positively on the company's operational efficiency and performance in the market.
Peer comparison
Dec 31, 2023
Dec 31, 2023