Ichor Holdings Ltd (ICHR)

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	749,938	726,775	716,119	695,629	707,724	777,397	896,788	1,011,621	1,068,205	1,055,606	982,741	943,597	919,437	889,843	865,797	823,144	789,344	742,168	680,759	608,119
Inventory	US$ in thousands	250,102	239,359	231,475	240,679	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
Inventory turnover		3.00	3.04	3.09	2.89	2.88	2.91	3.37	3.73	3.77	3.63	3.38	3.58	3.89	4.59	5.21	5.71	5.86	5.39	4.56	4.23

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $749,938K ÷ $250,102K
= 3.00

Ichor Holdings Ltd's inventory turnover has exhibited fluctuating trends over the analyzed period. The inventory turnover ratio measures the number of times a company sells and replaces its inventory over a specific period. A higher inventory turnover ratio generally indicates efficient inventory management.

From March 31, 2020, to December 31, 2020, Ichor Holdings Ltd saw a steady increase in inventory turnover from 4.23 to 5.86. This indicates an improvement in the speed at which the company was able to sell and replenish its inventory during this period.

However, from March 31, 2021, to September 30, 2021, there was a slight decline in inventory turnover from 5.71 to 4.59. This reduction suggests a slowdown in the company's inventory management efficiency.

During the latter half of the analyzed period, from March 31, 2022, to December 31, 2024, the inventory turnover ratio continued to decrease gradually from 3.58 to 3.00. This downward trend signifies a potential challenge for Ichor Holdings Ltd in managing and moving its inventory effectively.

Overall, a declining inventory turnover trend may indicate issues such as overstocking, slow sales, or inefficient inventory management practices, which could impact the company's liquidity and profitability in the long run. Further investigation and corrective action may be necessary to address these concerns and improve inventory turnover performance.