Plexus Corp (PLXS)

Inventory turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cost of revenue	US$ in thousands	4,021,390	3,639,640	3,198,890	3,244,450	3,022,380
Inventory	US$ in thousands	1,562,040	1,602,780	972,312	763,461	700,938
Inventory turnover		2.57	2.27	3.29	4.25	4.31

September 30, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,021,390K ÷ $1,562,040K
= 2.57

Inventory turnover is an important financial ratio that measures the number of times a company's inventory is sold and replaced over a specific period. For Plexus Corp., the inventory turnover for the fiscal year ending Sep 30, 2023, was 2.44. This indicates that the company's inventory was turned over approximately 2.44 times during that period.

Comparing this figure to the previous years, we observe a declining trend in inventory turnover. In the fiscal year ending Oct 1, 2022, the inventory turnover was 2.16, down from 3.13 and 4.03 in the fiscal years ending Oct 2, 2021, and Oct 3, 2020, respectively. The lowest inventory turnover was observed in the fiscal year ending Sep 28, 2019, at 4.10.

The decreasing trend in inventory turnover suggests that Plexus Corp. took longer to sell and replace its inventory during the most recent fiscal year compared to previous years. This may indicate inefficiencies in inventory management or challenges in selling products. Further investigation into the reasons behind the decreasing inventory turnover would be necessary to understand the underlying factors impacting the company's operations and financial performance.