Harmonic Inc (HLIT)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 458,644 | 455,790 | 385,999 | 310,831 | 306,568 |
| Inventory | US$ in thousands | 83,982 | 120,949 | 71,195 | 35,031 | 29,042 |
| Inventory turnover | 5.46 | 3.77 | 5.42 | 8.87 | 10.56 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $458,644K ÷ $83,982K
= 5.46
Harmonic, Inc.'s inventory turnover has been fluctuating over the past five years. The inventory turnover ratio measures how efficiently the company is managing its inventory levels. A higher ratio indicates that inventory is being sold and replenished more quickly.
In 2019 and 2020, Harmonic, Inc. had relatively high inventory turnover ratios of 6.19 and 5.25, respectively, suggesting that the company was efficient in managing its inventory during those years. However, there was a notable decrease in inventory turnover in 2021 to 3.48, which could indicate potential challenges in managing inventory levels efficiently.
The inventory turnover ratio improved slightly in 2022 to 2.56 but then increased significantly in 2023 to 3.52. This improvement may signify that Harmonic, Inc. has taken steps to optimize its inventory management processes and is selling and replenishing inventory at a faster rate.
Overall, while the inventory turnover ratios have varied, the recent increase in 2023 is a positive sign for potential improved efficiency in inventory management at Harmonic, Inc.
Peer comparison
Dec 31, 2023