Semtech Corporation (SMTC)

Inventory turnover

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Jan 26, 2020
Cost of revenue	US$ in thousands	1,705,820	601,097	447,929	402,465	392,680
Inventory	US$ in thousands	144,992	207,704	114,003	87,494	73,010
Inventory turnover		11.76	2.89	3.93	4.60	5.38

January 28, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,705,820K ÷ $144,992K
= 11.76

The inventory turnover for Semtech Corporation has shown significant fluctuations over the past five years. In the latest fiscal year ending on January 28, 2024, the inventory turnover ratio improved to 11.76, indicating that Semtech Corporation efficiently managed its inventory by selling and replacing it multiple times during the year. This is a significant increase compared to the previous year where the ratio was 2.89, signifying a substantial enhancement in inventory management efficiency.

In the preceding years, the inventory turnover ratios were 3.93 in January 30, 2022, 4.60 in January 31, 2021, and 5.38 in January 26, 2020. Although there were fluctuations, the trend generally showed an improvement in inventory turnover efficiency.

Overall, the increasing trend in inventory turnover ratios suggests that Semtech Corporation has been effectively managing its inventory levels and turning them into sales more efficiently in recent years, which is a positive indicator of good inventory management practices.