Qualcomm Incorporated (QCOM)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	16,137,000	15,869,000	16,857,000	17,881,000	18,376,000	18,635,000	17,704,000	16,292,000	15,076,000	14,262,000	13,091,000	11,767,000	10,632,000	9,256,000	8,608,000	8,642,000	8,524,000	8,599,000	9,331,000	9,708,000
Inventory	US$ in thousands	6,247,000	6,422,000	6,628,000	6,858,000	6,932,000	6,341,000	5,418,000	4,555,000	3,861,000	3,228,000	3,133,000	2,668,000	2,552,000	2,598,000	2,343,000	1,700,000	1,420,000	1,400,000	1,774,000	1,725,000
Inventory turnover		2.58	2.47	2.54	2.61	2.65	2.94	3.27	3.58	3.90	4.42	4.18	4.41	4.17	3.56	3.67	5.08	6.00	6.14	5.26	5.63

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $16,137,000K ÷ $6,247,000K
= 2.58

The inventory turnover of Qualcomm Incorporated has shown fluctuations over the past few years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times a company sells and replaces its inventory during a specific period.

Based on the data provided, we can observe that Qualcomm's inventory turnover has varied between 2.47 and 6.14 over the last five years. In general, lower inventory turnover ratios may suggest overstocking or slow-moving inventory, while higher ratios may indicate efficient inventory management and faster turnover.

Qualcomm's inventory turnover ratio peaked at 6.14 in March 2019, indicating a high level of efficiency in managing its inventory at that time. However, the ratio declined over the following periods, reaching a low of 2.47 in September 2022 before recovering slightly to 2.58 in December 2023.

It is important for Qualcomm to analyze the reasons behind these fluctuations in inventory turnover to ensure optimal inventory management practices. Factors such as changes in demand, production issues, or supply chain disruptions could impact the turnover ratio. By continuously monitoring and improving its inventory turnover, Qualcomm can enhance its operational efficiency and financial performance.