KLA-Tencor Corporation (KLAC)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,928,070 | 4,218,310 | 3,592,440 | 2,772,160 | 2,449,560 |
| Inventory | US$ in thousands | 3,034,780 | 2,876,780 | 2,146,890 | 1,575,380 | 1,310,980 |
| Inventory turnover | 1.29 | 1.47 | 1.67 | 1.76 | 1.87 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,928,070K ÷ $3,034,780K
= 1.29
The inventory turnover ratio for KLA-Tencor Corporation has been on a declining trend over the past five years, indicating a decrease in the company's efficiency in managing its inventory levels. A lower inventory turnover ratio suggests that the company is holding onto its inventory for a longer period before selling it, which can tie up valuable capital and lead to higher storage and carrying costs.
The downward trend in the inventory turnover ratio may signal potential issues such as overstocking, poor demand forecasting, or inefficient inventory management practices within the company. It is essential for KLA-Tencor Corporation to closely monitor its inventory levels and implement strategies to improve inventory turnover, such as streamlining its supply chain, optimizing production processes, or enhancing demand forecasting techniques.
Overall, the declining inventory turnover ratio for KLA-Tencor Corporation warrants further investigation and corrective actions to enhance operational efficiency and maintain a healthy balance between inventory levels and sales turnover.
Peer comparison
Jun 30, 2024