IPG Photonics Corporation (IPGP)

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	745,741	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	708,372	689,251	674,133	669,239
Inventory	US$ in thousands	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	380,790	417,163	425,996	417,817
Inventory turnover		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	1.86	1.65	1.58	1.60

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $745,741K ÷ $453,874K
= 1.64

The inventory turnover of IPG Photonics Corp has been relatively stable over the past eight quarters, fluctuating between 1.43 and 1.76. Overall, the company's inventory turnover ratio has shown a generally increasing trend from Q2 2022 to Q2 2023, indicating that IPG Photonics has been more efficient in managing its inventory levels and converting them into sales during this period. A higher inventory turnover ratio suggests that the company is selling its inventory more quickly, which is a positive sign of operational efficiency. However, the slight decrease in inventory turnover in Q4 2023 compared to the previous quarter could indicate a potential slowdown in inventory management efficiency or sales performance that may warrant further investigation.