Ichor Holdings Ltd (ICHR)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	811,687	883,582	1,005,422	1,122,553	1,183,063	1,170,085	1,089,601	1,042,788	1,006,052	966,206	940,330	896,037	864,586	817,368	753,638	678,436	599,403	551,316	564,705	651,673
Inventory	US$ in thousands	245,885	266,900	266,190	271,538	283,660	290,658	290,327	263,851	236,133	193,930	166,256	144,062	134,756	137,583	149,190	143,721	127,037	105,822	108,473	114,171
Inventory turnover		3.30	3.31	3.78	4.13	4.17	4.03	3.75	3.95	4.26	4.98	5.66	6.22	6.42	5.94	5.05	4.72	4.72	5.21	5.21	5.71

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $811,687K ÷ $245,885K
= 3.30

Inventory turnover measures how efficiently a company is managing its inventory levels by showing how many times the company's inventory is sold and replaced over a specific period.

For Ichor Holdings Ltd, the inventory turnover ratio has fluctuated over the past years, ranging from a low of 3.30 to a high of 6.42. Generally, higher inventory turnover ratios indicate better efficiency in inventory management.

In 2023, the inventory turnover ratio has been gradually decreasing from 4.13 in March to 3.30 in December, which may suggest a decrease in sales volume relative to the level of inventory held during the year.

Comparing the company's inventory turnover ratio to historical data, it appears that Ichor Holdings Ltd has generally maintained a healthy turnover rate, with some fluctuations. A sustained high turnover ratio could indicate that the company is effectively managing its inventory levels, while a consistently low ratio might suggest overstocking or slow sales.

Further analysis of the company's operations, industry benchmarks, and trends in related metrics would provide a comprehensive assessment of Ichor Holdings Ltd's inventory management efficiency.