Sanmina Corporation (SANM)

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	7,947,850	8,388,700	8,496,360	8,330,010	6,262,917	5,717,637	5,185,567	4,775,567	6,343,350	6,281,750	6,484,210	6,490,750	6,344,280	6,434,670	6,462,140	6,818,120	7,308,530	7,641,920	7,646,670	7,462,300
Inventory	US$ in thousands	1,391,720	1,477,220	1,489,200	1,552,570	1,728,000	1,684,100	1,590,120	1,437,960	1,253,700	1,041,790	892,633	785,406	819,474	861,281	883,670	883,727	843,764	900,557	915,155	1,006,550
Inventory turnover		5.71	5.68	5.71	5.37	3.62	3.40	3.26	3.32	5.06	6.03	7.26	8.26	7.74	7.47	7.31	7.72	8.66	8.49	8.36	7.41

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,947,850K ÷ $1,391,720K
= 5.71

The inventory turnover ratio for Sanmina Corporation has shown fluctuations over the past few quarters. The trend indicates that the company's efficiency in managing its inventory has improved from 3.26 in June 2022 to 5.71 in June 2023. This suggests the company has been able to sell and replace its inventory more frequently.

A higher inventory turnover ratio generally indicates a faster-moving inventory, which can be a positive sign as it implies that the company is efficiently managing its inventory levels and converting them into sales. However, it is essential to assess the ratio in conjunction with industry benchmarks and historical data to gain more meaningful insights into the company's inventory management performance.

Overall, the upward trend in Sanmina Corporation's inventory turnover ratio suggests improvements in inventory management efficiency, which could positively impact the company's working capital management and financial performance.