Rogers Corporation (ROG)

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	853,530	936,968	962,816	984,712	966,697	905,831	880,140	847,552	810,192	793,326	796,193	772,796	763,222	739,971	726,905	762,579	732,547	693,530	652,860	584,707
Inventory	US$ in thousands	153,500	157,073	169,675	177,089	182,400	173,610	171,129	152,150	133,384	118,216	110,761	106,706	102,360	109,733	124,747	127,517	132,859	137,908	135,067	133,242
Inventory turnover		5.56	5.97	5.67	5.56	5.30	5.22	5.14	5.57	6.07	6.71	7.19	7.24	7.46	6.74	5.83	5.98	5.51	5.03	4.83	4.39

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $853,530K ÷ $153,500K
= 5.56

To analyze Rogers Corp.'s inventory turnover, we can see that the ratio fluctuated over the quarters but generally remained within a relatively narrow range.

The inventory turnover ratio measures how efficiently a company is managing its inventory by indicating how many times during a period the company sells and replaces its stock. A higher turnover ratio typically indicates better inventory management and suggests that the company is efficiently selling its products.

Looking at the data provided, we observe that the inventory turnover ratio ranged from 3.56 to 3.99 over the last eight quarters. This indicates that, on average, Rogers Corp. turned over its inventory between approximately 3.56 and 3.99 times a year.

The highest inventory turnover ratio was recorded in Q1 2022 at 3.99, suggesting a peak in efficiency in managing inventory during that quarter. Conversely, the lowest turnover ratio was in Q4 2022 at 3.56, indicating slightly less effective inventory management during that period.

Overall, the inventory turnover ratios for Rogers Corp. remained relatively stable over the quarters, showing consistency in managing its inventory. It may be useful to compare these ratios with industry benchmarks to determine how Rogers Corp. is performing in relation to its peers.