Photronics Inc (PLAB)

Inventory turnover

		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	Oct 31, 2019	Jul 28, 2019	Apr 28, 2019
Cost of revenue (ttm)	US$ in thousands	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	486,786	461,142	441,270
Inventory	US$ in thousands	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	48,155	39,982	34,696
Inventory turnover		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	10.11	11.53	12.72

January 28, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $632,172K ÷ $50,680K
= 12.47

The inventory turnover of Photronics, Inc. has been relatively stable and consistent over the past eight quarters. It ranged between 8.96 and 11.13, with the highest turnover occurring in Q4 2023 and the lowest in Q2 2022.

A high inventory turnover ratio indicates that the company is efficiently managing its inventory levels and selling products quickly. This can be interpreted positively as it suggests strong sales and effective inventory management practices.

The consistency in inventory turnover ratios over the quarters indicates that Photronics, Inc. has been able to maintain a balance between stocking enough inventory to meet demand without overstocking, which could tie up capital unnecessarily.

Overall, the trend in the inventory turnover ratios suggests that Photronics, Inc. has a healthy and efficient inventory management system in place.