Pegasystems Inc (PEGA)

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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Cost of revenue (ttm)	US$ in thousands	398,799	391,007	379,640	376,697	375,549	378,825	380,110	379,397	378,372	368,635	361,525	352,697	342,113	336,363	328,095	321,672	313,832	310,913	311,625	314,724
Inventory	US$ in thousands	—	—	—	—	775	—	—	0	—	0	0	—	—	12,530	0	—	—	-88,760	0	0
Inventory turnover		—	—	—	—	484.58	—	—	—	—	—	—	—	—	26.84	—	—	—	—	—	—

March 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $398,799K ÷ $—K
= —

The inventory turnover for Pegasystems Inc. exhibits limited data availability across the reporting periods, with most quarters indicating unavailable or non-applicable figures. Specifically, no inventory turnover data is recorded from June 30, 2020, through September 30, 2021, suggesting that inventory management may not be relevant for the company's operations during this period, consistent with a predominantly software and service-based business model that typically does not carry significant inventories.

A notable exception appears at December 31, 2021, when the inventory turnover ratio is reported as 26.84. This elevated figure may reflect a one-time accounting adjustment, a change in inventory valuation, or other reporting considerations. The absence of similar figures in subsequent periods indicates that the measurement was either not repeated or deemed not meaningful for subsequent periods.

A remarkable variation occurs at March 31, 2024, with the inventory turnover ratio surging to 484.58, which is substantially higher than typical turnover ratios and suggests a potential anomaly. This extraordinary value could be attributed to the reporting of a very small average inventory base or an accounting entry that significantly impacted the ratio's numerator or denominator. The absence of further data points in subsequent quarters prevents a definitive trend analysis; however, such a spike implies abnormal accounting events rather than a typical operational shift.

Overall, the sparse and inconsistent inventory turnover data for Pegasystems Inc. aligns with the characteristics of a software-centric company where inventory levels are minimal or nonexistent in normal operations. The significant anomalies noted are likely attributable to specific accounting adjustments rather than operational changes. Consequently, this ratio does not provide a reliable basis for analyzing inventory management efficiency in the context of the company's established operational profile.