Cirrus Logic Inc (CRUS)

Inventory turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	1,047,610	1,222,850	1,033,620	814,237	801,858
Inventory	US$ in thousands	227,248	233,450	138,436	173,263	146,725
Inventory turnover		4.61	5.24	7.47	4.70	5.47

March 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,047,610K ÷ $227,248K
= 4.61

Inventory turnover measures how efficiently a company manages its inventory by showing how many times a company's inventory is sold and replaced within a specific period. For Cirrus Logic Inc, the inventory turnover ratio has fluctuated over the past five years. The downward trend from 7.47 in 2022 to 4.61 in 2024 indicates a relative decrease in the efficiency of managing its inventory. However, it is important to note that a high inventory turnover ratio may suggest strong sales performance and efficient inventory management. In contrast, a low ratio could indicate overstocking, obsolete inventory, or potentially slowing sales. Further analysis is needed to understand the underlying reasons for the fluctuation in Cirrus Logic Inc's inventory turnover ratio and to assess its overall impact on the company's financial performance and operational efficiency.