Entegris Inc (ENTG)
Inventory turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,754,489 | 1,759,518 | 1,844,814 | 1,924,815 | 2,026,321 | 2,100,255 | 2,201,247 | 2,066,505 | 1,885,620 | 1,684,189 | 1,377,321 | 1,301,197 | 1,239,229 | 1,185,837 | 1,125,535 | 1,060,600 | 1,009,591 | 952,231 | 921,041 | 892,608 |
| Inventory | US$ in thousands | 638,080 | 643,034 | 633,373 | 625,668 | 607,051 | 662,169 | 740,351 | 830,939 | 812,815 | 823,637 | 583,766 | 545,607 | 475,213 | 429,016 | 387,605 | 358,819 | 323,944 | 329,741 | 332,885 | 300,694 |
| Inventory turnover | 2.75 | 2.74 | 2.91 | 3.08 | 3.34 | 3.17 | 2.97 | 2.49 | 2.32 | 2.04 | 2.36 | 2.38 | 2.61 | 2.76 | 2.90 | 2.96 | 3.12 | 2.89 | 2.77 | 2.97 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,754,489K ÷ $638,080K
= 2.75
Entegris Inc's inventory turnover ratio over the past few years has shown some fluctuations. The ratio decreased from 2.97 in March 2020 to 2.77 in June 2020, indicating a slightly slower rate of inventory turnover. However, it improved to 3.12 by December 2020, showing more efficient management of inventory.
Subsequently, the inventory turnover ratio fluctuated between 2.36 and 3.34 over the following years, reflecting varying levels of inventory management efficiency. Generally, a higher inventory turnover ratio suggests that the company is selling goods more quickly, which is favorable as it reduces the risk of obsolete inventory and tied-up capital.
It's noteworthy that the inventory turnover ratio decreased to 2.74 by September 30, 2024, before slightly increasing to 2.75 by December 31, 2024. This decrease may indicate potential challenges in managing inventory levels effectively during that period.
Overall, the trend in Entegris Inc's inventory turnover ratio suggests some variability in managing inventory efficiency, and it is essential for the company to continuously monitor and improve its inventory management practices to optimize working capital and operational performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024