NXP Semiconductors NV (NXPI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,723,000 | 5,688,000 | 4,996,000 | 4,377,000 | 4,259,000 |
| Inventory | US$ in thousands | 2,134,000 | 1,782,000 | 1,189,000 | 1,030,000 | 1,192,000 |
| Inventory turnover | 2.68 | 3.19 | 4.20 | 4.25 | 3.57 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,723,000K ÷ $2,134,000K
= 2.68
NXP Semiconductors NV's inventory turnover has shown a declining trend over the past five years. The ratio decreased from 4.25 in 2020 to 2.68 in 2023. This downward trend may indicate inefficiencies in managing inventory levels or potential issues with sales or production processes. A lower inventory turnover ratio suggests that the company may be holding onto inventory for a longer period, which could lead to higher carrying costs and potential obsolescence risks. Further analysis of the company's inventory management practices and supply chain efficiency may be necessary to address and improve the inventory turnover ratio.
Peer comparison
Dec 31, 2023