Nextracker Inc. Class A Common Stock (NXT)

Inventory turnover

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022
Cost of revenue (ttm)	US$ in thousands	1,686,792	1,718,830	1,649,240
Inventory	US$ in thousands	201,736	202,662	196,235	136,656	138,057	251,198
Inventory turnover		8.36	8.48	8.40

March 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,686,792K ÷ $201,736K
= 8.36

The inventory turnover ratio for Nextracker Inc. Class A Common Stock has been fairly consistent over the past few quarters, ranging from 8.36 to 8.48. This indicates that the company is able to efficiently manage its inventory and convert it into sales. A high inventory turnover ratio is generally seen as positive, as it suggests that the company is selling its inventory quickly, reducing the risk of obsolescence or excess inventory. In Nextracker Inc.'s case, the consistent level of inventory turnover suggests effective inventory management practices, enabling the company to maintain optimal inventory levels and support its sales operations efficiently.