Synopsys Inc (SNPS)

Inventory turnover

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Cost of revenue	US$ in thousands	1,245,290	1,030,840	1,063,700	861,777	794,690
Inventory	US$ in thousands	361,849	325,590	211,927	229,023	192,333
Inventory turnover		3.44	3.17	5.02	3.76	4.13

October 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,245,290K ÷ $361,849K
= 3.44

Synopsys Inc's inventory turnover has fluctuated over the past five years, ranging from 3.17 to 5.02. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently. In 2022, the inventory turnover ratio was the highest at 5.02, suggesting stronger sales relative to inventory levels. This could indicate effective inventory management or increased demand for the company's products. However, in 2023 and 2024, the inventory turnover ratios decreased to 3.17 and 3.44, respectively, which may indicate potential issues such as overstocking, slowing sales, or inefficiencies in inventory management. Overall, it is important for Synopsys Inc to closely monitor its inventory turnover to ensure optimal levels that support sales growth and profitability.