Sanmina Corporation (SANM)

Inventory turnover

		Sep 30, 2024	Jun 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	7,194,080	7,229,620	7,571,250	8,012,050	8,452,900	8,560,560	8,394,210	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
Inventory	US$ in thousands	1,443,630	1,384,330	1,383,740	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
Inventory turnover		4.98	5.22	5.47	5.76	5.72	5.75	5.41	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

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,194,080K ÷ $1,443,630K
= 4.98

Sanmina Corporation's inventory turnover has fluctuated over the past years, ranging from a low of 3.26 in March 2022 to a high of 8.66 in March 2020. The average inventory turnover for the most recent quarter was 5.47, indicating that the company's inventory was turned over approximately 5.47 times during the period.

A higher inventory turnover ratio generally indicates that the company is managing its inventory more efficiently, resulting in shorter storage periods and reduced holding costs. However, it could also suggest potential stockouts or missed sales opportunities if inventory levels are too low.

Conversely, a lower inventory turnover ratio could indicate overstocking or obsolete inventory, which may lead to increased storage costs and potential losses due to inventory write-downs.

In analyzing Sanmina Corporation's inventory turnover, it is important to consider industry benchmarks and historical trends to assess the company's performance in managing its inventory effectively.