Illumina Inc (ILMN)

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	1,511,000	1,583,000	1,683,000	1,736,000	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
Inventory	US$ in thousands	547,000	574,000	561,000	584,000	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
Inventory turnover		2.76	2.76	3.00	2.97	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,511,000K ÷ $547,000K
= 2.76

The inventory turnover ratio for Illumina Inc has shown fluctuations over the periods under consideration, ranging from a low of 2.29 in June 2020 to a high of 3.28 in September 2021. The inventory turnover for the most recent period as of December 31, 2024, stands at 2.76. This indicates that the company is able to sell and replace its inventory approximately 2.76 times within the year.

A higher inventory turnover ratio generally signifies that the company is efficiently managing its inventory by quickly selling its products and generating revenues. Conversely, a lower ratio may indicate overstocking or slow-moving inventory, which could tie up resources and negatively impact the company's liquidity.

It is important for Illumina Inc to continue monitoring and analyzing its inventory turnover ratio to ensure optimal inventory management practices, maximize sales, and maintain a healthy balance between inventory levels and sales demand.