Harmonic Inc (HLIT)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 312,801 | 295,362 | 309,073 | 247,407 | 183,834 |
| Inventory | US$ in thousands | 64,004 | 83,982 | 120,949 | 71,195 | 35,031 |
| Inventory turnover | 4.89 | 3.52 | 2.56 | 3.48 | 5.25 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $312,801K ÷ $64,004K
= 4.89
The inventory turnover of Harmonic Inc has exhibited a declining trend over the past five years. In particular, the inventory turnover ratio decreased from 5.25 in December 31, 2020, to 3.48 in December 31, 2021, indicating that the company took longer to sell its inventory during this period. The ratio further dropped to 2.56 in December 31, 2022, signaling a continued slowdown in the rate at which inventory was being sold.
However, there was a slight improvement in the inventory turnover ratio in December 31, 2023, where it increased to 3.52, suggesting a more efficient management of inventory compared to the previous year. This positive trend was further accentuated in December 31, 2024, as the inventory turnover ratio improved to 4.89, reflecting a significant increase in the speed of inventory turnover.
Overall, the fluctuating pattern of Harmonic Inc's inventory turnover ratio over the five-year period indicates potential changes in the company's inventory management practices and sales strategies. Further analysis of operational efficiency and market dynamics could provide insights into the factors driving these fluctuations in inventory turnover.
Peer comparison
Dec 31, 2024