Photronics Inc (PLAB)

Inventory turnover

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Cost of revenue	US$ in thousands	628,604	597,601	558,970	533,262	486,786
Inventory	US$ in thousands	49,963	50,753	55,249	57,269	48,155
Inventory turnover		12.58	11.77	10.12	9.31	10.11

October 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $628,604K ÷ $49,963K
= 12.58

The inventory turnover ratio for Photronics, Inc. has shown a consistent upward trend over the past five years. The ratio increased from 8.93 in 2019 to 11.13 in 2023, indicating an improvement in the company's management of inventory. This suggests that Photronics, Inc. has been more effective in selling its inventory relative to the cost of goods sold. A higher inventory turnover ratio generally reflects efficient inventory management and may indicate that the company is effectively managing its production and sales processes. It is important to note that a high inventory turnover ratio may also be indicative of aggressive inventory management leading to potential stockouts, so the company should carefully balance inventory levels to meet demand while minimizing carrying costs. Overall, the increasing trend in inventory turnover signals improving operational efficiency and effective inventory management at Photronics, Inc.