Cohu Inc (COHU)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 504,569 | 594,717 | 664,634 | 551,126 | 550,527 |
| Inventory | US$ in thousands | 155,793 | 170,141 | 161,053 | 142,500 | 130,706 |
| Inventory turnover | 3.24 | 3.50 | 4.13 | 3.87 | 4.21 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $504,569K ÷ $155,793K
= 3.24
The inventory turnover ratio measures the efficiency with which a company manages its inventory by indicating how many times the company sells and replaces its inventory over a specific period. A higher inventory turnover ratio generally indicates efficient inventory management.
Looking at Cohu Inc's inventory turnover ratios over the past five years, the trend shows some variation. In 2023, the inventory turnover ratio decreased to 3.24 from 3.50 in 2022. This decrease may suggest that Cohu Inc took longer to sell and replace its inventory in 2023 compared to the previous year.
However, when compared to 2021 and 2020, Cohu Inc's inventory turnover ratios in 2023 still fall within the range of historical values, indicating a consistent level of inventory management efficiency. Further analysis and comparison with industry benchmarks would provide a more in-depth understanding of Cohu Inc's inventory management performance.
Peer comparison
Dec 31, 2023