Mercury Systems Inc (MRCY)
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 | 657,526 | 655,850 | 669,218 | 672,862 | 650,685 | 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 |
| Inventory | US$ in thousands | 332,920 | 352,689 | 344,415 | 351,088 | 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 |
| Inventory turnover | 1.98 | 1.86 | 1.94 | 1.92 | 1.94 | 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 |
June 30, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $657,526K ÷ $332,920K
= 1.98
The inventory turnover ratio of Mercury Systems Inc. exhibits notable fluctuations over the observed period from September 2020 to June 2025. Starting at 2.22 in September 2020, the ratio experienced minor declines and increases, reaching a low of 1.76 in September 2023. Conversely, it reached a peak of 2.43 in June 2021. Throughout this timeframe, the ratio demonstrates a general downward trend with intermittent increases.
Specifically, the ratio decreased from 2.22 at the end of September 2020 to a low of approximately 1.76 in September 2023, indicating a decline in inventory turnover efficiency over this period. Post-September 2023, the ratio shows some stabilization and slight recovery, with values approaching around 1.98 by June 2025.
This pattern suggests a period of decreasing inventory management efficiency during the early to mid-2020s, with the company holding inventories for longer durations relative to sales. The recent stability and modest upticks in the ratio could signal efforts toward improved inventory management or shifts in sales strategies. Overall, the trend reflects a gradual lengthening of inventory holding periods, which may warrant further analysis to determine underlying causes and implications for operational efficiency.
Peer comparison
Jun 30, 2025
Jun 30, 2025