Qualcomm Incorporated (QCOM)

Inventory turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	17,060,000	15,869,000	18,635,000	14,262,000	9,255,000
Inventory	US$ in thousands	6,423,000	6,422,000	6,341,000	3,228,000	2,598,000
Inventory turnover		2.66	2.47	2.94	4.42	3.56

September 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $17,060,000K ÷ $6,423,000K
= 2.66

Qualcomm Incorporated's inventory turnover has exhibited some fluctuation over the past five years, ranging from a high of 4.42 in 2021 to a low of 2.47 in 2023. In general, a higher inventory turnover ratio indicates that the company is selling its inventory more frequently within a given period, which is favorable as it implies efficient management of inventory levels.

The inventory turnover ratio of Qualcomm has decreased in recent years, from 4.42 in 2021 to 2.66 in 2024. A declining inventory turnover ratio could suggest potential issues such as overstocking, obsolete inventory, or slowing sales. It may be worthwhile for Qualcomm to assess its inventory management practices to improve efficiency and optimize inventory turnover.

Overall, fluctuations in Qualcomm's inventory turnover ratio highlight the importance of regularly monitoring inventory levels and sales performance to ensure optimal utilization of resources and maintain profitability.