Cirrus Logic Inc (CRUS)

Inventory turnover

		Mar 31, 2024	Dec 31, 2023	Sep 23, 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
Cost of revenue (ttm)	US$ in thousands	1,047,612	1,156,062	1,148,437	1,186,214	1,222,853	1,165,185	1,131,120	1,090,808	1,033,615	942,110	911,746	841,534	814,237	620,229	566,795	582,430	582,552	750,548	742,519	742,868
Inventory	US$ in thousands	227,248	256,675	328,930	300,956	233,450	152,426	164,571	174,370	138,436	148,525	188,360	192,722	173,263	142,689	209,050	199,332	146,725	137,920	144,829	146,317
Inventory turnover		4.61	4.50	3.49	3.94	5.24	7.64	6.87	6.26	7.47	6.34	4.84	4.37	4.70	4.35	2.71	2.92	3.97	5.44	5.13	5.08

March 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,047,612K ÷ $227,248K
= 4.61

Cirrus Logic Inc's inventory turnover has displayed some fluctuation over the past 10 quarters, ranging from a low of 2.71 to a high of 7.64. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times inventory is sold and replaced over a specific period.

In general, a higher inventory turnover ratio indicates that a company is effectively managing its inventory levels and selling its products quickly. Cirrus Logic Inc's inventory turnover ratios of 7.64, 7.47, and 6.87 suggest efficient inventory management during those quarters. Conversely, the lower ratios of 2.71, 2.92, and 3.49 indicate potentially slower-moving inventory or inefficient inventory management during those periods.

It is important to analyze the inventory turnover ratio in conjunction with other financial metrics and industry benchmarks to gain a more comprehensive understanding of Cirrus Logic Inc's overall performance and operational efficiency.