MaxLinear Inc (MXL)

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	165,746	181,641	206,205	245,466	307,600	378,032	434,688	469,281	470,483	449,349	431,088	408,263	396,566	402,083	392,529	332,173	265,798	187,563	135,252	141,202
Inventory	US$ in thousands	90,343	96,063	94,738	96,125	99,908	114,942	126,152	149,585	160,544	165,970	146,431	139,041	131,703	127,347	98,502	92,154	97,839	104,471	34,284	31,088
Inventory turnover		1.83	1.89	2.18	2.55	3.08	3.29	3.45	3.14	2.93	2.71	2.94	2.94	3.01	3.16	3.98	3.60	2.72	1.80	3.95	4.54

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $165,746K ÷ $90,343K
= 1.83

MaxLinear Inc's inventory turnover ratio fluctuated over the period analyzed. The data shows that the company's inventory turnover was relatively stable in the range of 2.5 to 4.5 times per year from March 2020 to March 2023. This indicates that the company managed its inventory efficiently during this period, with a higher turnover implying that the company was selling its inventory more quickly.

However, there was a notable decline in the inventory turnover ratio from September 2023 to December 2024, dropping to as low as 1.83 times. This decrease may suggest that MaxLinear Inc faced challenges in managing its inventory during this period, potentially leading to excess or obsolete inventory levels.

Overall, while the historical trend indicates effective inventory management for the most part, the recent decline in inventory turnover signals a need for the company to reassess its inventory management strategies and potentially implement measures to optimize inventory levels and turnover rates in order to improve operational efficiency and financial performance.