Ichor Holdings Ltd (ICHR)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	821,635	1,191,880	1,011,290	870,204	603,612
Inventory	US$ in thousands	245,885	283,660	236,133	134,756	127,037
Inventory turnover		3.34	4.20	4.28	6.46	4.75

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $821,635K ÷ $245,885K
= 3.34

The inventory turnover of Ichor Holdings Ltd has shown some fluctuation over the past five years. The ratio decreased from 6.46 in 2020 to 4.75 in 2019, indicating a decrease in the efficiency of inventory management during that period. Subsequently, there was an increase to 4.28 in 2021 and a further increase to 4.20 in 2022, suggesting an improvement in managing inventory levels. However, in 2023, the inventory turnover decreased to 3.34, which could indicate a potential issue with managing or selling inventory efficiently during that year. Overall, the trend of inventory turnover for Ichor Holdings Ltd has shown variability, and further analysis would be required to understand the factors driving these fluctuations.