Materion Corporation (MTRN)
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 | 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 | 71,120 | -113,159 | -115,383 | -113,087 |
| Inventory | US$ in thousands | 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 | 236,253 | 191,956 | 213,329 | 224,198 |
| Inventory turnover | 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 | 0.30 | -0.59 | -0.54 | -0.50 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,503,033K ÷ $441,597K
= 3.40
The inventory turnover for Materion Corp shows some fluctuations over the past eight quarters. The ratio has ranged from a low of 2.90 in Q3 2023 to a high of 3.39 in Q1 2022. Overall, the company has maintained a fairly stable inventory turnover ratio, indicating that they are efficiently managing their inventory levels and converting them into sales.
The decreasing trend in inventory turnover from Q1 2023 to Q3 2023 may suggest that Materion Corp is holding higher levels of inventory relative to sales during this period. This could potentially tie up working capital and lead to higher holding costs. Conversely, the increase in inventory turnover in Q1 2022 indicates that the company was able to sell its inventory more quickly during this period.
It is important for Materion Corp to closely monitor its inventory turnover ratio to ensure optimal management of its inventory levels to balance between meeting customer demand and controlling costs. Further analysis, such as comparing the inventory turnover ratio with industry benchmarks or with competitors, could provide additional insights into the efficiency of Materion Corp's inventory management practices.