Nextracker Inc. Class A Common Stock (NXT)

Inventory turnover

		Mar 31, 2025	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
Cost of revenue (ttm)	US$ in thousands	1,950,372	1,727,762	1,790,003	1,803,474	1,686,792	1,718,830	1,649,240	1,627,596	1,615,164	1,587,942	1,460,674	1,361,854	1,314,061	1,158,556	1,100,069	1,024,695	963,636
Inventory	US$ in thousands	209,432	217,301	179,251	166,023	201,736	202,662	196,235	136,656	138,057	251,198	240,024	225,611	172,208	172,208	108,322	94,463	84,472
Inventory turnover		9.31	7.95	9.99	10.86	8.36	8.48	8.40	11.91	11.70	6.32	6.09	6.04	7.63	6.73	10.16	10.85	11.41

March 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,950,372K ÷ $209,432K
= 9.31

The inventory turnover ratio for Nextracker Inc. Class A Common Stock provides insights into how efficiently the company manages its inventory. The trend analysis of the inventory turnover ratio over the reporting periods reveals fluctuations in the rate at which the company sells and replaces its inventory.

From March 31, 2021, to June 30, 2022, the inventory turnover ratio decreased steadily from 11.41 to 6.04, indicating a decrease in the rate at which inventory is being sold and replaced. This decline may suggest issues such as excess inventory levels, slowing sales, or inefficient inventory management practices during that period.

However, from March 31, 2024, to December 31, 2024, there was a subsequent increase in the inventory turnover ratio from 8.36 to 7.95, suggesting an improvement in managing inventory levels and sales efficiency during that period. The ratio peaked at 11.91 on June 30, 2023, indicating a significant improvement in inventory turnover efficiency compared to the lowest point observed on June 30, 2022.

Overall, the fluctuations in the inventory turnover ratio for Nextracker Inc. Class A Common Stock indicate variations in inventory management practices and sales performance over the analyzed periods. Further analysis and comparison with industry benchmarks would be necessary to assess the company's inventory management effectiveness comprehensively.