Qualcomm Incorporated (QCOM)

Inventory turnover

		Sep 30, 2024	Jun 23, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	17,059,000	16,472,000	16,090,000	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
Inventory	US$ in thousands	6,423,000	6,020,000	6,087,000	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
Inventory turnover		2.66	2.74	2.64	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

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $17,059,000K ÷ $6,423,000K
= 2.66

Qualcomm's inventory turnover ratio has shown fluctuation over the considered periods. The inventory turnover ratio measures the efficiency of a company in managing its inventory levels. A higher turnover ratio indicates that the company is selling its inventory quickly.

From December 2019 to June 2022, Qualcomm's inventory turnover ratio exhibited an upward trend, peaking at 6.00 in June 2020. This suggests that Qualcomm was effectively selling its inventory during this period.

However, from September 2022 onwards, the inventory turnover ratio started to decrease steadily, reaching a low of 2.47 in September 2023. This decline may indicate potential issues in managing inventory or a slowdown in sales.

Although the ratio slightly improved in the following quarters, it has remained relatively stable between 2.47 and 2.94 since 2023. This stability implies that Qualcomm has managed to sustain its inventory turnover despite the previous decrease.

Overall, Qualcomm's inventory turnover ratio demonstrates a mixed performance, with periods of efficient inventory management followed by a slight decrease in turnover efficiency. It would be essential for the company to monitor this ratio closely and make adjustments to improve inventory management efficiency and optimize sales moving forward.