Materion Corporation (MTRN)

Inventory turnover

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 Jun 30, 2020 Mar 31, 2020
Cost of revenue (ttm) US$ in thousands 1,147,597 1,529,855 1,492,128 1,461,202 1,503,033 1,504,320 1,535,662 1,585,759 1,610,153 1,596,536 1,134,202 661,931 175,193 82,157 114,693 142,908 171,848 113,635 102,900 88,340
Inventory US$ in thousands 441,299 476,596 462,963 466,574 441,597 452,042 455,343 434,485 423,080 420,299 422,376 386,992 361,115 311,745 290,739 272,828 250,778 211,700 209,847 204,702
Inventory turnover 2.60 3.21 3.22 3.13 3.40 3.33 3.37 3.65 3.81 3.80 2.69 1.71 0.49 0.26 0.39 0.52 0.69 0.54 0.49 0.43

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,147,597K ÷ $441,299K
= 2.60

The inventory turnover ratio of Materion Corporation has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The inventory turnover, which measures how many times a company sells and replaces its inventory during a certain period, started at a relatively low level of 0.43 on March 31, 2020.

There was an improvement in the inventory turnover ratio over the following quarters, reaching a peak of 3.81 on December 31, 2022. This significant increase indicates that Materion was managing its inventory more efficiently during that period.

Subsequently, the inventory turnover ratio experienced a slight decline but remained at relatively high levels from March 31, 2023, to September 30, 2024, oscillating between 2.60 and 3.40. These values suggest that Materion was still efficiently managing its inventory turnover during these quarters.

Overall, the trend in Materion Corporation's inventory turnover indicates improvements in inventory management efficiency, particularly highlighted by the notable increase in the ratio from 2020 to 2022, followed by maintaining relatively high turnover levels in the subsequent periods. This trend suggests that Materion has been successful in optimizing its inventory levels and turnover processes.