Digi International Inc (DGII)

Inventory turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	174,140	181,490	186,962	189,850	192,646	191,217	188,891	183,348	171,939	161,676	152,108	146,223	141,974	141,145	137,611	135,573	135,299	134,013	133,862	134,491
Inventory	US$ in thousands	53,357	56,665	62,192	67,590	74,396	83,605	83,065	80,993	73,223	61,687	51,672	51,874	43,921	47,263	51,407	54,757	51,568	46,550	43,280	47,380
Inventory turnover		3.26	3.20	3.01	2.81	2.59	2.29	2.27	2.26	2.35	2.62	2.94	2.82	3.23	2.99	2.68	2.48	2.62	2.88	3.09	2.84

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $174,140K ÷ $53,357K
= 3.26

The inventory turnover ratio for Digi International Inc has shown a fluctuating trend over the past few years. The ratio indicates how efficiently the company is managing its inventory by measuring how many times the company sells and replaces its inventory during a specific period.

From December 2019 to September 2022, the inventory turnover ratio increased steadily from 2.48 to 3.09, reflecting an improvement in inventory management efficiency. However, from December 2022 to March 2024, the ratio declined from 2.82 to 3.01 and then to 3.20, indicating a potential slowdown in inventory turnover.

The most recent data for September 2024 shows an inventory turnover ratio of 3.26, which indicates that Digi International Inc is selling and replacing its inventory approximately 3.26 times a year. This suggests that the company is efficiently managing its inventory turnover, albeit with some variability in recent quarters.

Overall, while the inventory turnover has shown fluctuations, it is essential for the company to monitor and optimize its inventory management processes to ensure efficient use of working capital and maintain healthy liquidity levels.