Qorvo Inc (QRVO)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 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
Cost of revenue (ttm)	US$ in thousands	2,211,078	2,372,160	2,384,760	2,252,487	2,196,865	1,986,112	1,991,439	2,229,453	2,350,287	2,440,921	2,455,486	2,359,546	2,307,982	2,299,200	2,234,247	2,131,741	2,039,477	1,983,357	1,897,731	1,917,378
Inventory	US$ in thousands	656,216	694,457	726,558	710,555	726,687	839,855	917,390	796,596	857,277	840,850	847,378	755,748	710,228	597,563	570,144	507,787	479,340	476,846	523,690	517,198
Inventory turnover		3.37	3.42	3.28	3.17	3.02	2.36	2.17	2.80	2.74	2.90	2.90	3.12	3.25	3.85	3.92	4.20	4.25	4.16	3.62	3.71

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,211,078K ÷ $656,216K
= 3.37

Qorvo Inc's inventory turnover ratio has fluctuated over the past few years. The ratio indicates how many times the company's inventory is sold and replaced within a given period. A higher turnover ratio generally implies efficient inventory management.

From March 31, 2020, to December 31, 2022, the inventory turnover ratio gradually declined from 3.71 to 2.74. This downward trend suggests that Qorvo Inc may be carrying excess inventory relative to its sales volume during this period.

Subsequently, the inventory turnover ratio increased to 3.17 by March 31, 2024, indicating a potential improvement in inventory management efficiency. However, the ratio slightly decreased to 3.28 by June 30, 2024, and then to 3.37 by December 31, 2024.

Overall, while the inventory turnover ratio has shown some variability, it is essential for Qorvo Inc to continue monitoring and optimizing its inventory management practices to ensure a balance between adequate stock levels and efficient turnover to support its financial performance.