Semtech Corporation (SMTC)

Inventory turnover

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Cost of revenue	US$ in thousands	452,759	572,508	1,705,820	277,975	601,097
Inventory	US$ in thousands	163,600	144,992	144,992	207,704	207,704
Inventory turnover		2.77	3.95	11.76	1.34	2.89

January 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $452,759K ÷ $163,600K
= 2.77

The inventory turnover for Semtech Corporation has displayed varying trends over the past few years, reflecting the company's ability to manage its inventory effectively.

In January 29, 2023, the inventory turnover ratio stood at 2.89, indicating that on average, the company's inventory was sold and replaced nearly 2.89 times during the year. However, in the following year on January 31, 2023, the turnover ratio decreased significantly to 1.34, suggesting a slowdown in the rate at which inventory was sold.

The situation improved notably by January 28, 2024, with an inventory turnover ratio of 11.76, indicating a considerable increase in the efficiency of inventory management, likely due to increased sales or more effective inventory control measures. Subsequently, in January 31, 2024, the ratio decreased slightly to 3.95 but remained at a relatively healthy level.

By January 31, 2025, the inventory turnover ratio decreased further to 2.77, signifying a mild decrease in the rate at which inventory was being turned over relative to the previous year.

Overall, Semtech Corporation's inventory turnover ratios have fluctuated over the years, with some periods of efficiency gains and others showing decreased turnover rates. It is essential for the company to monitor this ratio closely to ensure optimal inventory management and cost control in its operations.