Impinj Inc (PI)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 274,327 | 262,461 | 203,173 | 163,474 | 137,404 |
| Inventory | US$ in thousands | 99,346 | 97,172 | 46,397 | 21,958 | 36,329 |
| Inventory turnover | 2.76 | 2.70 | 4.38 | 7.44 | 3.78 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $274,327K ÷ $99,346K
= 2.76
Impinj Inc's inventory turnover has exhibited fluctuations over the past five years. In December 31, 2020, the inventory turnover was 3.78, indicating the company turned over its inventory approximately 3.78 times during that year. However, there was a significant increase in inventory turnover to 7.44 by December 31, 2021, suggesting a more efficient management of inventory.
Subsequently, the inventory turnover decreased to 4.38 by December 31, 2022, before experiencing a more substantial decline to 2.70 by December 31, 2023. The inventory turnover slightly recovered to 2.76 by December 31, 2024.
The downward trend in inventory turnover from 2022 to 2024 may suggest challenges in managing inventory levels effectively or potential issues with sales forecasting. A lower inventory turnover ratio could indicate excess inventory levels or slow-moving inventory, which may lead to increased carrying costs or obsolete inventory risks.
Further analysis of the company's inventory management practices and its supply chain efficiency may be warranted to address the declining trend in inventory turnover.
Peer comparison
Dec 31, 2024