FormFactor Inc (FORM)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 455,676 | 404,522 | 451,928 | 446,907 | 405,696 |
| Inventory | US$ in thousands | 101,676 | 111,685 | 123,157 | 111,548 | 99,229 |
| Inventory turnover | 4.48 | 3.62 | 3.67 | 4.01 | 4.09 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $455,676K ÷ $101,676K
= 4.48
FormFactor Inc's inventory turnover ratio has shown some fluctuations over the past five years. In 2020, the inventory turnover was at 4.09, indicating that the company managed to sell and replace its inventory approximately 4.09 times within the year.
However, in 2021, there was a slight decrease in the inventory turnover to 4.01, suggesting a slightly longer period for inventory to be sold and replenished. This downward trend continued in 2022 and 2023, with inventory turnovers of 3.67 and 3.62 respectively, indicating a potential slowdown in sales relative to the level of inventory held.
In 2024, there was a notable improvement in inventory turnover to 4.48, suggesting the company was more efficient in managing its inventory during that year. Overall, while there have been fluctuations, it is essential for FormFactor Inc to continue monitoring its inventory turnover to ensure optimal management of inventory levels to support sales and profitability.
Peer comparison
Dec 31, 2024