Cohu Inc (COHU)
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 | 453,821 | 500,893 | 521,628 | 540,880 | 594,717 | 579,444 | 605,479 | 637,965 | 664,703 | 650,160 | 617,965 | 552,524 | 516,161 | 492,983 | 478,582 | 496,945 | 502,681 | 555,063 | 495,302 | 428,684 |
| Inventory | US$ in thousands | 155,793 | 166,673 | 173,753 | 176,189 | 170,141 | 165,244 | 162,666 | 160,363 | 161,053 | 157,512 | 155,850 | 160,871 | 142,500 | 137,879 | 141,811 | 134,859 | 130,706 | 133,923 | 137,229 | 130,744 |
| Inventory turnover | 2.91 | 3.01 | 3.00 | 3.07 | 3.50 | 3.51 | 3.72 | 3.98 | 4.13 | 4.13 | 3.97 | 3.43 | 3.62 | 3.58 | 3.37 | 3.68 | 3.85 | 4.14 | 3.61 | 3.28 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $453,821K ÷ $155,793K
= 2.91
Inventory turnover is a crucial efficiency ratio that measures how many times a company sells and replaces its inventory during a specific period. A higher inventory turnover ratio indicates that a company is selling its inventory quickly, which is generally favorable.
Looking at the inventory turnover trend for Cohu Inc over the past few quarters, we can see some fluctuations. The company's inventory turnover ratio has ranged from 2.91 to 4.14 over the last few years. In general, the trend has been relatively stable, with some variability quarter to quarter.
A ratio of less than 1 indicates that the company is overstocked or facing declining demand, while a ratio greater than 1 signifies efficient inventory management. Cohu Inc's inventory turnover ratios all indicate that the company is managing its inventory efficiently, as they range from 2.91 to 4.14, which is generally healthy for a manufacturing company.
It is essential for Cohu Inc to monitor its inventory turnover ratio regularly to ensure optimal inventory management practices. By maintaining a balance between having enough inventory to meet demand but not excess stock that ties up capital, the company can continue to improve its operational efficiency and profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023