Photronics Inc (PLAB)

Inventory turnover

		Oct 31, 2024	Jul 28, 2024	Apr 28, 2024	Jan 28, 2024	Oct 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 31, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 31, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020
Cost of revenue (ttm)	US$ in thousands	632,082	629,980	630,135	632,172	628,603	612,875	610,194	453,612	448,183	448,599	436,955	569,791	558,980	546,573	538,928	529,500	533,262	533,307	520,506	513,737
Inventory	US$ in thousands	56,527	55,472	54,257	50,680	49,963	55,379	54,940	52,796	50,753	50,313	57,940	61,971	55,249	53,165	56,384	56,407	57,269	54,733	56,968	49,673
Inventory turnover		11.18	11.36	11.61	12.47	12.58	11.07	11.11	8.59	8.83	8.92	7.54	9.19	10.12	10.28	9.56	9.39	9.31	9.74	9.14	10.34

October 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $632,082K ÷ $56,527K
= 11.18

The inventory turnover ratio for Photronics Inc has shown some fluctuations over the past few years. The trend indicates that the company is able to sell and replace its inventory relatively quickly. The highest inventory turnover ratio was observed in January 2024 at 12.47, signaling that the company efficiently turned over its inventory during that period. Conversely, the lowest ratio was recorded in May 2022 at 7.54, suggesting a relatively slower rate of inventory turnover during that time.

Overall, the inventory turnover ratio for Photronics Inc has been consistently above 8, indicating a healthy level of efficiency in managing its inventory. It is important to note that a higher inventory turnover ratio implies that the company is efficiently managing its inventory by minimizing excess or obsolete inventory levels and optimizing the use of resources.

However, it is also essential to monitor the trend of the inventory turnover ratio over time to ensure that the company is maintaining its efficiency in managing inventory levels effectively.