Harmonic Inc (HLIT)
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 | 319,112 | 309,926 | 284,421 | 286,935 | 298,466 | 288,774 | 300,389 | 304,411 | 309,073 | 308,302 | 291,335 | 269,233 | 247,407 | 229,507 | 215,308 | 198,586 | 183,834 | 184,351 | 178,568 | 183,284 |
| Inventory | US$ in thousands | 64,004 | 73,864 | 84,133 | 86,631 | 83,982 | 103,748 | 113,587 | 131,642 | 120,949 | 99,024 | 82,636 | 81,816 | 71,195 | 51,856 | 43,031 | 35,539 | 35,031 | 36,802 | 32,097 | 34,854 |
| Inventory turnover | 4.99 | 4.20 | 3.38 | 3.31 | 3.55 | 2.78 | 2.64 | 2.31 | 2.56 | 3.11 | 3.53 | 3.29 | 3.48 | 4.43 | 5.00 | 5.59 | 5.25 | 5.01 | 5.56 | 5.26 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $319,112K ÷ $64,004K
= 4.99
The inventory turnover ratio for Harmonic Inc measures how efficiently the company is managing its inventory by indicating how many times the company's inventory is sold and replaced over a specific period.
Analyzing the trend of Harmonic Inc's inventory turnover from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio. The inventory turnover ratio started at 5.26 on March 31, 2020, improved to 5.59 by March 31, 2021, suggesting better efficiency in selling and replenishing inventory.
However, the ratio began to decline from that point onwards. By September 30, 2022, the turnover ratio dropped to 3.11. This downward trend continued until March 31, 2024, with the ratio hitting 3.31.
From March 31, 2024, to December 31, 2024, we saw a slight improvement in the inventory turnover ratio, increasing from 3.31 to 4.99. This increment may indicate a more efficient management of inventory during this period.
Overall, a higher inventory turnover ratio is generally preferable as it indicates that the company is selling goods quickly and efficiently. However, a consistently high ratio could also suggest that the company is struggling to maintain enough inventory to meet demand. Conversely, a low inventory turnover may indicate overstocking or difficulties in selling inventory, leading to potential obsolescence or storage costs.
Peer comparison
Dec 31, 2024
Dec 31, 2024