Rogers Corporation (ROG)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	872,000	982,025	824,788	777,858	804,997
Inventory	US$ in thousands	153,500	182,400	133,384	102,360	132,859
Inventory turnover		5.68	5.38	6.18	7.60	6.06

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $872,000K ÷ $153,500K
= 5.68

Inventory turnover measures how efficiently a company is managing its inventory. It is calculated by dividing the cost of goods sold by the average inventory for a period. Looking at Rogers Corp.'s inventory turnover over the past five years, we can see a fluctuating trend.

In 2023, the inventory turnover ratio was 3.92, indicating that the company's inventory was turning over approximately 3.92 times during the year. This was an improvement from the previous year's ratio of 3.56. However, it is lower than the ratios in 2021, 2020, and 2019, which were 4.38, 4.99, and 4.40 respectively.

A higher inventory turnover ratio generally indicates better inventory management and faster sales of inventory. Rogers Corp. may need to investigate the reasons behind the decrease in inventory turnover in 2022 and assess if there are any inefficiencies in managing their inventory levels. Monitoring and improving inventory turnover can help the company optimize its working capital, reduce carrying costs, and improve overall operational efficiency.