SanDisk Corp (SNDK)
Inventory turnover
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,307,800 | 3,559,850 | 3,302,520 | 3,369,290 | 2,564,720 |
| Inventory | US$ in thousands | 809,395 | 698,011 | 756,975 | 750,075 | 678,382 |
| Inventory turnover | 4.09 | 5.10 | 4.36 | 4.49 | 3.78 |
December 31, 2015 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,307,800K ÷ $809,395K
= 4.09
SanDisk Corp's inventory turnover has shown fluctuating trends over the years based on the provided data. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company's inventory is sold and replaced within a specific period.
In 2011, SanDisk Corp had an inventory turnover of 3.78, indicating that the company's inventory was turned over approximately 3.78 times during that year. The ratio increased to 4.49 in 2012, suggesting improved efficiency in managing inventory.
By 2013, the inventory turnover ratio slightly decreased to 4.36, but it rebounded in 2014 to 5.10, reaching its peak during the analyzed period. This increase may suggest more effective inventory management practices, such as better forecasting or streamlined operations.
However, in 2015, the inventory turnover ratio declined to 4.09, indicating a decrease in inventory turnover efficiency compared to the previous year. A lower inventory turnover ratio could imply excess inventory levels, potential obsolescence, or challenges in matching supply with demand.
Overall, SanDisk Corp's inventory turnover ratios reflect varying levels of efficiency in managing inventory over the years, with fluctuations that may require further investigation to identify underlying factors impacting the company's inventory management practices.
Peer comparison
Dec 31, 2015