Mercury Systems Inc (MRCY)
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 | 639,374 | 649,875 | 655,449 | 638,134 | 657,154 | 641,460 | 621,591 | 606,121 | 593,241 | 571,146 | 569,059 | 557,910 | 538,808 | 511,509 | 474,966 | 458,364 | 439,766 | 416,126 | 402,224 | 385,019 |
| Inventory | US$ in thousands | 335,300 | 343,015 | 354,212 | 362,910 | 337,216 | 342,777 | 311,976 | 287,578 | 270,339 | 259,614 | 251,272 | 234,403 | 221,640 | 226,840 | 218,410 | 206,044 | 178,093 | 161,858 | 153,642 | 148,500 |
| Inventory turnover | 1.91 | 1.89 | 1.85 | 1.76 | 1.95 | 1.87 | 1.99 | 2.11 | 2.19 | 2.20 | 2.26 | 2.38 | 2.43 | 2.25 | 2.17 | 2.22 | 2.47 | 2.57 | 2.62 | 2.59 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $639,374K ÷ $335,300K
= 1.91
The inventory turnover of Mercury Systems Inc has shown a fluctuating trend over the past two years. The inventory turnover ratio indicates how efficiently the company is managing its inventory by measuring how many times inventory is sold and replaced within a specific period.
From December 2019 to September 2021, there was a general increasing trend in inventory turnover, indicating that the company was selling its inventory at a faster rate. This suggests better inventory management and potentially reduced carrying costs.
However, from September 2021 onwards, there has been a slight decline in the inventory turnover ratio. While the ratio remains relatively high, the decreasing trend may signal that inventory is not being sold as quickly as before, which could lead to higher carrying costs and potential liquidity issues if inventory levels become excessive.
In summary, Mercury Systems Inc's inventory turnover has shown a mixed trend over the analyzed period, with periods of improvement followed by a slight decline. It will be important for the company to closely monitor and manage its inventory levels to ensure efficient operations and optimal financial performance.
Peer comparison
Jun 30, 2024
Jun 30, 2024