Lumentum Holdings Inc (LITE)
Inventory turnover
| Jun 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,185,100 | 1,140,400 | 1,162,800 | 1,163,000 | 1,144,900 | 1,150,000 | 1,077,600 | 1,114,600 | 1,179,300 | 1,138,500 | 1,114,000 | 1,013,400 | 924,000 | 912,900 | 919,200 | 929,200 | 959,700 | 962,800 | 973,400 | 992,900 |
| Inventory | US$ in thousands | 470,100 | 422,900 | 402,300 | 403,300 | 398,400 | 420,700 | 471,700 | 428,000 | 408,600 | 410,200 | 366,900 | 366,200 | 250,100 | 224,000 | 208,100 | 207,000 | 196,400 | 210,700 | 207,100 | 212,600 |
| Inventory turnover | 2.52 | 2.70 | 2.89 | 2.88 | 2.87 | 2.73 | 2.28 | 2.60 | 2.89 | 2.78 | 3.04 | 2.77 | 3.69 | 4.08 | 4.42 | 4.49 | 4.89 | 4.57 | 4.70 | 4.67 |
June 30, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,185,100K ÷ $470,100K
= 2.52
The inventory turnover ratio for Lumentum Holdings Inc. exhibits notable fluctuations over the period from September 2020 through June 2025. Initially, the ratio experienced relatively stable levels, averaging around 4.6 to 4.7 in the latter half of 2020 and early 2021. This period indicates a consistent efficiency in inventory management, with inventories being turned over approximately 4.4 to 4.9 times per year.
Beginning in the third quarter of 2021, a gradual decline in inventory turnover is observed, with the ratio decreasing from 4.49 in September 2021 to 2.77 by September 2022. This downward trend continued into late 2022 and early 2023, reaching a low of 2.28 in December 2022. The decline reflects an elongation of the average time inventory remains unsold, suggesting potential issues with demand, inventory management, or strategic inventory buildup.
From early 2023 onward, the ratio shows a modest recovery, rising to approximately 2.73 in March 2024 and approaching 2.89 in December 2024. This trend indicates a slight improvement in inventory turnover efficiency. In the most recent quarter available, September 2024, the ratio remains stable at around 2.88, with further slight increases through June 2025, reaching 2.52.
Overall, the trend from 2021 through mid-2025 reveals a significant decrease in inventory turnover, transitioning from relatively efficient levels to more prolonged inventory holding periods. The initial stability suggests effective inventory management prior to 2021, but the subsequent decline could imply inventory accumulation, reduced sales velocity, or changes in product mix. The stabilization and slight recovery in the later periods may suggest efforts to improve inventory management or shifts in market demand dynamics.
Peer comparison
Jun 30, 2025
Jun 30, 2025