Mercury Systems Inc (MRCY)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 639,374 | 657,154 | 593,241 | 538,808 | 439,766 |
| Inventory | US$ in thousands | 335,300 | 337,216 | 270,339 | 221,640 | 178,093 |
| Inventory turnover | 1.91 | 1.95 | 2.19 | 2.43 | 2.47 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $639,374K ÷ $335,300K
= 1.91
Mercury Systems Inc's inventory turnover has shown a decreasing trend over the past five years, declining from 2.47 in 2020 to 1.91 in 2024. A lower inventory turnover ratio indicates that the company is taking longer to sell its inventory, which may lead to excess inventory or potential obsolescence issues. This could tie up working capital and ultimately impact the company's profitability and cash flow. Management should closely monitor inventory levels and adjust purchasing and production strategies to improve inventory turnover efficiency and optimize resource allocation.
Peer comparison
Jun 30, 2024
Company name
Symbol
Inventory turnover
Mercury Systems Inc
MRCY
1.91
Hubbell Inc
HUBB
5.30
Universal Display
OLED
0.77
Vishay Intertechnology Inc
VSH
3.75