Seagate Technology PLC (STX)
Inventory turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,654,000 | 5,484,000 | 5,164,000 | 5,015,000 | 5,026,000 | 5,337,000 | 5,785,000 | 6,033,000 | 6,604,000 | 7,059,000 | 7,586,000 | 8,192,000 | 8,451,000 | 8,446,000 | 8,205,000 | 7,764,000 | 7,486,000 | 7,467,000 | 7,478,000 | 7,667,000 |
| Inventory | US$ in thousands | 1,472,000 | 1,473,000 | 1,383,000 | 1,239,000 | 1,191,000 | 1,053,000 | 1,052,000 | 1,140,000 | 1,200,000 | 1,194,000 | 1,606,000 | 1,565,000 | 1,479,000 | 1,287,000 | 1,188,000 | 1,204,000 | 1,281,000 | 1,318,000 | 1,323,000 | 1,142,000 |
| Inventory turnover | 3.84 | 3.72 | 3.73 | 4.05 | 4.22 | 5.07 | 5.50 | 5.29 | 5.50 | 5.91 | 4.72 | 5.23 | 5.71 | 6.56 | 6.91 | 6.45 | 5.84 | 5.67 | 5.65 | 6.71 |
March 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,654,000K ÷ $1,472,000K
= 3.84
The inventory turnover of Seagate Technology PLC has demonstrated notable fluctuations from June 2020 through March 2025. At the start of the period, in June 2020, the ratio stood at 6.71, indicating a relatively efficient inventory management with rapid sales cycles. Over the subsequent quarters, there was a gradual decline, reaching a low of approximately 3.73 in September 2024, suggesting a slowdown in inventory turnover or increased inventory holdings relative to sales.
During the period from September 2020 to September 2021, the ratio showed improvements, peaking at 6.91 in September 2021, reflecting improved inventory management. However, post-September 2021, the ratio exhibited a declining trend, reaching its lowest point of 3.73 in September 2024. This sustained decrease indicates that inventories are staying longer before being sold, which could be due to several factors such as slower sales growth, increased inventory levels, or a shift in product mix.
The ratio experienced minor fluctuations within the last year, ranging narrowly from 4.22 in March 2024 to 3.73 in September 2024, before slightly picking up again to 3.84 in March 2025. Overall, the downward trend suggests a period of reduced inventory turnover efficiency, potentially raising concerns about inventory management effectiveness or changes in market demand dynamics.
In summary, Seagate's inventory turnover ratio has declined significantly over the observed period, transitioning from an above-average rate of over 6.7 in mid-2020 to around 3.72–3.84 in early 2025. This pattern reflects a shift towards slower inventory liquidation, which warrants further analysis to determine underlying causes such as market conditions, product lifecycle stages, or operational strategies impacting inventory management.
Peer comparison
Mar 31, 2025
Mar 31, 2025