Cirrus Logic Inc (CRUS)

Inventory turnover

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 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
Cost of revenue (ttm)	US$ in thousands	900,039	879,548	923,117	898,317	984,325	964,725	849,673	909,083	907,262	940,638	985,413	950,363	911,517	857,819	771,994	747,462	684,135	661,929	649,567	592,435
Inventory	US$ in thousands	299,092	275,558	271,765	232,566	227,248	256,675	328,930	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
Inventory turnover		3.01	3.19	3.40	3.86	4.33	3.76	2.58	2.76	3.01	4.03	6.46	5.77	5.23	6.20	5.20	3.97	3.55	3.82	4.55	2.83

March 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $900,039K ÷ $299,092K
= 3.01

Inventory turnover is a key financial ratio that measures how many times a company's inventory is sold and replaced over a specific period. In the case of Cirrus Logic Inc, the inventory turnover has shown some variations over the reported periods.

The inventory turnover for Cirrus Logic Inc ranged from a low of 2.58 in September 30, 2023, to a high of 6.46 in December 31, 2022. Generally, a higher inventory turnover ratio is considered more favorable as it indicates that the company is selling its inventory quickly.

A trend analysis of the inventory turnover ratio for Cirrus Logic Inc shows fluctuations in the ratio over time. The company experienced a notable increase in inventory turnover from 2.83 in September 30, 2020, to 6.46 in December 31, 2022, indicating an improvement in inventory management efficiency. However, the ratio declined in subsequent periods, reaching a low of 2.58 in September 30, 2023.

The average inventory turnover ratio for Cirrus Logic Inc over the periods provided is approximately 4.06. This suggests that, on average, Cirrus Logic Inc is able to turn over its inventory about four times within a year.

Overall, while there have been fluctuations in the inventory turnover ratio for Cirrus Logic Inc, the company generally demonstrates reasonably effective inventory management practices, with an average turnover ratio indicating a healthy level of efficiency in managing its inventory.