Sanmina Corporation (SANM)

Inventory turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cost of revenue	US$ in thousands	8,452,910	7,268,270	6,230,200	6,434,660	7,641,920
Inventory	US$ in thousands	1,477,220	1,684,100	1,041,790	861,281	900,557
Inventory turnover		5.72	4.32	5.98	7.47	8.49

September 30, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $8,452,910K ÷ $1,477,220K
= 5.72

The inventory turnover for Sanmina Corp has displayed fluctuations over the past five years. The ratio has demonstrated a decreasing trend, declining from 8.49 in 2019 to 5.55 in 2023. This indicates that the company's ability to efficiently manage its inventory and convert it into sales has weakened over this period. The decline may be attributed to factors such as changes in demand patterns, production inefficiencies, or inventory management issues. It would be important for stakeholders to monitor the company's strategies to address these challenges and improve its inventory turnover efficiency.