Kratos Defense & Security Solutions (KTOS)
Inventory turnover
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 874,100 | 853,400 | 848,700 | 843,200 | 811,100 | 775,200 | 754,500 | 730,000 | 705,000 | 676,900 | 639,100 | 602,400 | 587,500 | 586,400 | 588,400 | 593,300 | 564,600 | 544,500 | 529,100 | 519,700 |
| Inventory | US$ in thousands | 176,000 | 162,100 | 158,900 | 154,800 | 159,800 | 156,200 | 150,100 | 145,900 | 134,000 | 125,500 | 120,300 | 118,200 | 107,100 | 91,700 | 90,900 | 90,700 | 85,700 | 81,200 | 78,300 | 66,900 |
| Inventory turnover | 4.97 | 5.26 | 5.34 | 5.45 | 5.08 | 4.96 | 5.03 | 5.00 | 5.26 | 5.39 | 5.31 | 5.10 | 5.49 | 6.39 | 6.47 | 6.54 | 6.59 | 6.71 | 6.76 | 7.77 |
March 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $874,100K ÷ $176,000K
= 4.97
The inventory turnover ratio for Kratos Defense & Security Solutions demonstrates a pattern of gradual decline over the analyzed period, indicating changes in inventory management efficiency and sales performance. Starting from a high of 7.77 times as of June 30, 2020, the ratio steadily decreased through the subsequent quarters, reaching a low of 4.96 times by December 31, 2023.
This downward trend, particularly evident from June 30, 2020, to December 31, 2023, suggests that the company has experienced a lengthening of the average period it takes to sell its inventory. Such a decline could imply challenges in inventory turnover, possibly due to overstocking, slower sales, or shifts in product demand.
However, there is a partial reversal indicated by the data from March 31, 2024, onwards. The ratio increased modestly to 5.45 times by June 30, 2024, then experienced slight fluctuations, settling around 5.26 times as of December 31, 2024. The ratio further decreased slightly to 4.97 times by March 31, 2025.
Overall, the pattern indicates a period of decreasing inventory turnover over the recent years, reflecting potential operational or market-related challenges that have impacted the efficiency with which inventory is converted into sales. The recent slight uptick could signal a stabilization or a response to previous inefficiencies, but the ratio remains below the levels observed in mid-2020, pointing to a relatively slower inventory turnover rate in the current period.
Peer comparison
Mar 31, 2025
Mar 31, 2025