MaxLinear Inc (MXL)

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	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	149,495	157,828	160,846	167,622
Inventory	US$ in thousands	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	31,510	37,642	42,875	42,753
Inventory turnover		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	4.74	4.19	3.75	3.92

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $307,600K ÷ $99,908K
= 3.08

To analyze MaxLinear Inc's inventory turnover, we observe a consistently upward trend over the past eight quarters. The inventory turnover ratio measures the number of times a company's inventory is sold and replaced over a period. A higher turnover ratio generally indicates that the company is efficiently managing its inventory, while a lower ratio suggests inefficiencies.

The increasing trend in MaxLinear's inventory turnover implies that the company is improving its inventory management and sales efficiency. This may be attributed to effective inventory control, demand forecasting, and production planning. A higher turnover can also signify that the company is effectively minimizing excess inventory and obsolescence.

The average inventory turnover for the recent quarters stands at approximately 3.23 times, reflecting a positive trend. This indicates that the company is successfully leveraging its inventory to generate sales, potentially leading to improved cash flow and profitability.

Overall, the steady increase in MaxLinear's inventory turnover ratio suggests effective inventory management, which could contribute to optimizing working capital and enhancing overall operational efficiency.