Lumentum Holdings Inc (LITE)
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 | 1,267,000 | 1,628,800 | 1,562,200 | 1,619,100 | 1,718,000 | 1,654,600 | 1,588,500 | 1,430,100 | 1,277,100 | 1,257,700 | 1,247,300 | 1,249,200 | 1,273,300 | 1,033,200 | 1,066,700 | 1,089,900 | 1,116,400 | 1,359,500 | 1,367,700 | 1,261,700 |
| Inventory | US$ in thousands | 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 | 188,900 | 172,700 | 179,600 | 202,200 |
| Inventory turnover | 3.18 | 3.87 | 3.31 | 3.78 | 4.20 | 4.03 | 4.33 | 3.91 | 5.11 | 5.61 | 5.99 | 6.03 | 6.48 | 4.90 | 5.15 | 5.13 | 5.91 | 7.87 | 7.62 | 6.24 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,267,000K ÷ $398,400K
= 3.18
The inventory turnover ratio for Lumentum Holdings Inc has shown fluctuations over the past few quarters. From Dec 31, 2019, to Mar 31, 2022, the ratio steadily increased from 6.24 to 6.03, indicating an improvement in the efficiency of managing inventory.
However, starting from Jun 30, 2022, the ratio began to fluctuate more significantly, reaching a peak of 7.87 on Sep 30, 2019, and then dropping to 3.18 on Jun 30, 2024. This suggests a potential issue in inventory management during the most recent period.
A lower inventory turnover ratio can indicate excess inventory levels or slower sales, which can tie up capital and lead to potential obsolescence risks. It is essential for the company to assess and address the factors contributing to the decrease in inventory turnover to optimize working capital and operational performance in the future.
Peer comparison
Jun 30, 2024
Jun 30, 2024