KLA-Tencor Corporation (KLAC)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,928,072 | 3,880,471 | 3,891,936 | 4,123,980 | 4,218,319 | 4,233,934 | 4,120,675 | 3,820,047 | 3,592,441 | 3,386,118 | 3,203,656 | 2,965,227 | 2,772,165 | 2,621,468 | 2,501,997 | 2,465,882 | 2,449,561 | 2,420,802 | 2,317,589 | 2,092,231 |
| Inventory | US$ in thousands | 3,034,780 | 3,007,050 | 3,038,630 | 3,007,700 | 2,876,780 | 2,749,740 | 2,535,380 | 2,408,320 | 2,146,890 | 1,982,300 | 1,829,410 | 1,715,340 | 1,575,380 | 1,450,590 | 1,420,620 | 1,394,220 | 1,310,980 | 1,264,130 | 1,251,400 | 1,254,240 |
| Inventory turnover | 1.29 | 1.29 | 1.28 | 1.37 | 1.47 | 1.54 | 1.63 | 1.59 | 1.67 | 1.71 | 1.75 | 1.73 | 1.76 | 1.81 | 1.76 | 1.77 | 1.87 | 1.91 | 1.85 | 1.67 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,928,072K ÷ $3,034,780K
= 1.29
The inventory turnover ratio for KLA-Tencor Corporation has been relatively stable over the past few quarters, ranging between 1.29 and 1.91. The ratio measures how efficiently the company manages its inventory by indicating how many times it sells and replaces its inventory during a specific period.
A lower inventory turnover ratio may suggest slower sales or excess inventory, tying up capital and potentially leading to obsolescence or storage costs. On the other hand, a higher ratio indicates faster sales and efficient inventory management.
In this case, KLA-Tencor's inventory turnover has generally remained above 1.5, which suggests that the company has been effectively managing its inventory levels and turning over its products in a timely manner. However, a decreasing trend observed in recent quarters, from 1.91 to 1.67, could signify potential challenges such as slowing sales or difficulties in managing inventory efficiently.
It would be important for the company to closely monitor and address any issues impacting inventory turnover to ensure optimal utilization of resources and maintain a healthy balance between supply and demand.
Peer comparison
Jun 30, 2024
Jun 30, 2024