Lumentum Holdings Inc (LITE)
Inventory turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,185,100 | 1,107,700 | 1,198,000 | 924,000 | 959,700 |
| Inventory | US$ in thousands | 470,100 | 398,400 | 408,600 | 250,100 | 196,400 |
| Inventory turnover | 2.52 | 2.78 | 2.93 | 3.69 | 4.89 |
June 30, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,185,100K ÷ $470,100K
= 2.52
The inventory turnover ratio for Lumentum Holdings Inc. demonstrates a consistent declining trend over the observed period from June 30, 2021, through June 30, 2025. Specifically, the ratio decreased from 4.89 in 2021 to 3.69 in 2022, indicating a decrease of approximately 24.3%. This decline continued into 2023, reaching 2.93, reflecting a further reduction of approximately 20.6%. In 2024, the ratio declined marginally to 2.78, representing a decrease of approximately 5.1%, and continued to decrease slightly to 2.52 in 2025, a reduction of about 9.4% from the previous year.
This downward trajectory suggests an increasing tendency for Lumentum to hold inventory for longer periods relative to their sales volume. Such a decline in inventory turnover can imply potential challenges in managing inventory efficiently, possibly indicating slower sales or changes in product mix, production, or supply chain dynamics. It is also noteworthy that the pace of decline appears to slow in the more recent years, which might suggest a stabilization of inventory management strategies or market conditions.
Overall, the persistent decrease in inventory turnover over the four-year span reflects a trend toward less frequent inventory sales relative to inventory levels, which could have implications for liquidity, working capital management, and overall operational efficiency. Further analysis would be required to assess underlying causes, such as shifts in demand, product lifecycle stages, or inventory management policies.
Peer comparison
Jun 30, 2025