Seagate Technology PLC (STX)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,445,000 | 6,635,000 | 8,774,000 | 8,303,000 | 8,193,000 |
| Inventory | US$ in thousands | 1,239,000 | 1,140,000 | 1,565,000 | 1,204,000 | 1,142,000 |
| Inventory turnover | 4.39 | 5.82 | 5.61 | 6.90 | 7.17 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,445,000K ÷ $1,239,000K
= 4.39
Seagate Technology PLC's inventory turnover has shown a decreasing trend over the past five years, declining from 7.17 in 2020 to 4.39 in 2024. This indicates that the company is taking longer to sell its inventory compared to previous years. A lower inventory turnover ratio may suggest inefficiencies in inventory management, such as overstocking or slow-moving inventory.
It is noteworthy that the downward trend in inventory turnover may be a cause for concern as it could indicate potential issues such as obsolete inventory, declining sales, or increased competition. Seagate Technology PLC may need to reassess its inventory management strategies to improve efficiency and optimize its working capital.
Peer comparison
Jun 30, 2024