Illumina Inc (ILMN)

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	1,759,000	1,722,000	1,685,000	1,636,000	1,612,000	1,583,000	1,523,000	1,452,000	1,373,000	1,314,000	1,244,000	1,125,000	1,036,000	1,003,000	994,000	1,054,000	1,076,000	1,063,000	1,060,000	1,050,000
Inventory	US$ in thousands	587,000	615,000	617,000	586,000	568,000	559,000	518,000	465,000	431,000	401,000	380,000	364,000	372,000	415,000	435,000	384,000	359,000	417,000	420,000	412,000
Inventory turnover		3.00	2.80	2.73	2.79	2.84	2.83	2.94	3.12	3.19	3.28	3.27	3.09	2.78	2.42	2.29	2.74	3.00	2.55	2.52	2.55

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,759,000K ÷ $587,000K
= 3.00

Illumina Inc's inventory turnover ratio has ranged from 2.42 to 2.89 over the past eight quarters, indicating how efficiently the company manages its inventory. A higher inventory turnover ratio generally suggests that the company is selling its products quickly and efficiently, which is favorable as it reduces carrying costs and the risk of obsolete inventory.

The slight fluctuations in Illumina's inventory turnover ratio over the quarters may reflect seasonal variations, changes in demand, or adjustments in the company's inventory management practices. Overall, the consistency of the ratio within a relatively narrow range suggests that Illumina has been able to maintain a steady balance between managing its inventory levels and meeting customer demand.

It is important for Illumina to continue monitoring and optimizing its inventory turnover ratio to ensure that its inventory is efficiently utilized and that working capital is effectively managed. By analyzing trends in inventory turnover, the company can make informed decisions regarding production levels, purchasing strategies, and overall operational efficiency.