Synopsys Inc (SNPS)

Inventory turnover

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Cost of revenue (ttm)	US$ in thousands	1,267,014	1,222,193	1,172,571	1,136,270	1,091,067	1,063,697	1,015,702	949,587	910,762	861,777	851,600	839,542	809,821	794,690	752,884	746,508	752,922	752,946	760,785	759,534
Inventory	US$ in thousands	382,727	325,590	282,791	256,426	220,881	211,927	219,736	213,532	212,919	229,023	241,103	230,068	230,907	192,333	159,813	166,437	148,057	141,518	155,108	166,329
Inventory turnover		3.31	3.75	4.15	4.43	4.94	5.02	4.62	4.45	4.28	3.76	3.53	3.65	3.51	4.13	4.71	4.49	5.09	5.32	4.90	4.57

January 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,267,014K ÷ $382,727K
= 3.31

The inventory turnover ratio for Synopsys, Inc. has been fluctuating over the last eight quarters. The ratio indicates how efficiently the company is managing its inventory by showing how many times the inventory is sold and replaced over a specific period.

In Q1 2024, the inventory turnover was 3.31, which was lower than the previous quarter but still higher than the ratios in Q3 and Q2 2023. This might indicate that the company took longer to sell and replace its inventory in Q1 2024.

The highest inventory turnover ratio was seen in Q1 and Q4 of 2022, with ratios of 4.94 and 5.02, respectively. These quarters showed that the company was able to turn over its inventory more frequently, possibly due to efficient inventory management practices or strong demand for its products.

Overall, the trend in the inventory turnover ratios shows some variability but generally indicates that Synopsys has been effectively managing its inventory. However, further analysis and comparison with industry benchmarks would provide a clearer picture of the company's inventory efficiency.