Smart Global Holdings Inc (SGH)

Inventory turnover

		Mar 1, 2024	Dec 1, 2023	Aug 25, 2023	May 26, 2023	Feb 24, 2023	Nov 25, 2022	Aug 26, 2022	May 27, 2022	Feb 25, 2022	Nov 26, 2021	Aug 27, 2021	May 28, 2021	Feb 26, 2021	Nov 27, 2020	May 29, 2020	Feb 28, 2020	Nov 29, 2019	Aug 30, 2019	May 31, 2019	Mar 1, 2019
Cost of revenue (ttm)	US$ in thousands	913,689	1,044,661	1,218,737	1,612,326	1,657,952	1,639,060	1,609,863	1,216,874	1,212,065	1,102,223	976,139	1,234,240	1,078,937	1,047,971	1,026,196	983,899	1,002,735	1,083,312	1,147,311	1,207,648
Inventory	US$ in thousands	172,763	208,441	174,977	226,051	294,367	416,082	263,768	365,258	334,148	317,851	363,601	288,962	189,327	147,203	180,554	161,407	159,999	118,738	132,816	171,843
Inventory turnover		5.29	5.01	6.97	7.13	5.63	3.94	6.10	3.33	3.63	3.47	2.68	4.27	5.70	7.12	5.68	6.10	6.27	9.12	8.64	7.03

March 1, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $913,689K ÷ $172,763K
= 5.29

Inventory turnover for Smart Global Holdings Inc has fluctuated over the past few years, ranging from a low of 2.68 to a high of 9.12. On average, the company has achieved an inventory turnover of approximately 5.88 times per year.

A higher inventory turnover ratio indicates that the company is efficiently managing its inventory by selling goods quickly, which can lead to lower holding costs and reduced risk of inventory obsolescence. On the other hand, a lower ratio may indicate overstocking or slow-moving inventory, which could tie up cash and result in higher storage costs.

Overall, Smart Global Holdings Inc has shown variations in its inventory turnover, suggesting fluctuations in their inventory management practices. Monitoring this ratio over time can help assess the company's effectiveness in managing its inventory levels and optimizing its working capital.