IPG Photonics Corporation (IPGP)

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	624,970	665,153	654,598	699,428	745,191	833,730	863,813	876,212	874,134	799,881	794,575	781,026	764,462	755,751	728,124	696,956	661,728	654,401	665,032	688,602
Inventory	US$ in thousands	284,780	320,723	400,839	431,899	453,874	479,829	491,301	506,149	509,363	555,537	556,747	484,971	460,747	435,070	404,547	368,149	364,993	370,344	367,166	363,383
Inventory turnover		2.19	2.07	1.63	1.62	1.64	1.74	1.76	1.73	1.72	1.44	1.43	1.61	1.66	1.74	1.80	1.89	1.81	1.77	1.81	1.89

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $624,970K ÷ $284,780K
= 2.19

IPG Photonics Corporation's inventory turnover ratio has shown fluctuating trends over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times the inventory is sold and replaced within a specific time frame.

The inventory turnover ratio for IPG Photonics Corporation ranged from a low of 1.43 on June 30, 2022 to a high of 2.19 on December 31, 2024. Generally, a higher inventory turnover ratio is preferred as it suggests that the company is efficiently managing its inventory levels and is able to quickly convert inventory into sales.

It is worth noting that the inventory turnover ratio experienced a significant increase from September 30, 2024, to December 31, 2024, rising from 1.64 to 2.19. This increase indicates that the company might have improved its inventory management practices during this period, resulting in a faster turnover of inventory.

Overall, while there have been fluctuations in IPG Photonics Corporation's inventory turnover ratio over the period analyzed, the general trend shows some variability but with a general improvement in inventory turnover efficiency in the latter part of the period.