MACOM Technology Solutions Holdings Inc (MTSI)

Inventory turnover

		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	Dec 31, 2019
Cost of revenue (ttm)	US$ in thousands	335,805	308,686	282,005	262,699	262,610	268,497	273,818	273,260	268,988	264,352	261,988	262,300	265,065	269,598	270,636	267,220	259,871	249,661	257,748	265,829
Inventory	US$ in thousands	194,490	190,715	177,806	159,501	136,300	139,008	131,882	121,335	114,960	110,228	93,352	88,538	82,699	83,495	84,516	89,015	91,584	95,576	99,624	106,857
Inventory turnover		1.73	1.62	1.59	1.65	1.93	1.93	2.08	2.25	2.34	2.40	2.81	2.96	3.21	3.23	3.20	3.00	2.84	2.61	2.59	2.49

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $335,805K ÷ $194,490K
= 1.73

Inventory turnover measures how efficiently a company manages its inventory by assessing how many times a company sells and replaces its inventory in a given period. A higher inventory turnover ratio indicates that a company is selling goods quickly and efficiently, while a lower ratio may suggest overstocking or slow sales.

Examining the inventory turnover data for MACOM Technology Solutions Holdings Inc over the past several quarters reveals fluctuations in the efficiency of its inventory management. The company's inventory turnover has ranged from a low of 1.59 to a high of 3.23 over the past five years.

In recent quarters, the inventory turnover ratio has shown some variability, with a downward trend from 2.40 in Jun 30, 2022, to 1.73 in Sep 30, 2024. This decrease may indicate potential challenges in selling inventory or managing stock levels effectively during this period.

It is important for MACOM Technology Solutions Holdings Inc to closely monitor and analyze its inventory turnover ratio to ensure optimal inventory management practices. By improving inventory turnover, the company can enhance its cash flow, reduce holding costs, and potentially boost profitability. Further analysis and comparison with industry benchmarks can provide additional insights into the company's inventory management efficiency.