MKS Instruments Inc (MKSI)

Inventory turnover

		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	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	4,938,000	4,992,000	5,015,000	2,952,000	2,743,000	2,410,700	2,169,000	2,132,900	2,096,900	2,030,800	1,943,900	1,831,200	1,745,200	1,671,139	1,602,123	1,568,168	1,557,178	1,496,847	1,473,506	1,489,590
Inventory	US$ in thousands	991,000	1,009,000	1,036,000	1,058,000	977,000	961,000	689,000	636,000	577,000	550,400	527,000	515,200	501,400	494,200	490,200	474,200	462,100	463,263	479,497	475,633
Inventory turnover		4.98	4.95	4.84	2.79	2.81	2.51	3.15	3.35	3.63	3.69	3.69	3.55	3.48	3.38	3.27	3.31	3.37	3.23	3.07	3.13

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,938,000K ÷ $991,000K
= 4.98

Inventory turnover is a crucial ratio that assesses how efficiently a company manages its inventory. MKS Instruments Inc's inventory turnover has fluctuated over the past few years, ranging from a low of 2.51 in Sep 2022 to a high of 4.98 in Dec 2023. Generally, a higher inventory turnover indicates that the company is selling its inventory more quickly, which is considered favorable.

The fluctuations in MKS Instruments Inc's inventory turnover may indicate changes in its sales patterns, inventory management practices, or overall business strategy. It is important to note that a sudden decrease in inventory turnover, as seen in Mar 2023 with a ratio of 2.79, may raise concerns about excess inventory or slowing sales.

Overall, MKS Instruments Inc's inventory turnover has shown some variability over the periods analyzed, and further analysis of the company's operations and industry trends may provide additional insights into the factors influencing its inventory management efficiency.