Qorvo Inc (QRVO)

Inventory turnover

		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	Sep 30, 2019	Jun 30, 2019
Cost of revenue (ttm)	US$ in thousands	2,281,011	2,239,869	2,029,116	2,034,443	2,272,457	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	1,879,696	1,872,701	1,920,514
Inventory	US$ in thousands	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	479,885	485,284	517,755
Inventory turnover		3.21	3.08	2.42	2.22	2.85	2.74	2.90	2.90	3.12	3.25	3.85	3.92	4.20	4.25	4.16	3.62	3.71	3.92	3.86	3.71

March 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,281,011K ÷ $710,555K
= 3.21

Inventory turnover is a liquidity ratio that measures how efficiently a company manages its inventory by assessing how quickly it sells and replaces its inventory during a specific period. A higher inventory turnover ratio indicates that a company is selling its products quickly and efficiently.

Analyzing Qorvo Inc's inventory turnover over the past several quarters, we observe fluctuations in the ratio. The trend indicates that the company's inventory turnover has varied, but overall, it has remained relatively stable over the period.

Qorvo's inventory turnover has ranged from a low of 2.22 to a high of 4.25 over the past two years. The average inventory turnover ratio for the period appears to be around 3.39, implying that, on average, the company sells and replaces its inventory approximately 3.39 times a year.

The recent decrease in inventory turnover from the previous quarter may indicate that Qorvo is either carrying more inventory or experiencing a slowdown in sales. Conversely, the increase in inventory turnover from prior years could signal improved efficiency in managing inventory levels or increased demand for its products.

Overall, while Qorvo's inventory turnover has shown some variability, it suggests that the company is effectively managing its inventory levels, balancing supply and demand to support its operations.