NXP Semiconductors NV (NXPI)

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	Dec 31, 2018
Cost of revenue (ttm)	US$ in thousands	5,723,000	5,659,000	5,668,000	5,680,000	5,688,000	5,599,000	5,399,000	5,143,000	4,996,000	4,883,000	4,782,000	4,565,000	4,377,000	4,250,000	4,152,000	4,355,000
Inventory	US$ in thousands	2,134,000	2,140,000	2,107,000	1,977,000	1,782,000	1,581,000	1,462,000	1,311,000	1,189,000	1,173,000	1,116,000	1,056,000	1,030,000	1,064,000	1,228,000	1,227,000	1,192,000	1,134,000	1,279,000
Inventory turnover		2.68	2.64	2.69	2.87	3.19	3.54	3.69	3.92	4.20	4.16	4.28	4.32	4.25	3.99	3.38	3.55

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,723,000K ÷ $2,134,000K
= 2.68

NXP Semiconductors NV's inventory turnover has exhibited a declining trend over the last eight quarters. The company's inventory turnover ratio decreased from 3.92 in Q1 2022 to 2.68 in Q4 2023. This downward trajectory indicates that the company is taking longer to sell its inventory, which could potentially signal inefficiencies in managing or selling its products. It is essential for the company to closely monitor its inventory levels and sales strategies to improve inventory turnover and optimize working capital management.