TTM Technologies Inc (TTMI)

Inventory turnover

		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	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	1,987,815	1,929,193	1,901,855	1,851,691	1,831,430	1,861,382	1,944,583	2,005,058	2,037,081	2,042,146	1,963,238	1,922,234	1,876,729	1,811,739	1,772,432	1,774,827	1,746,299	1,905,174	2,093,859	2,172,414
Inventory	US$ in thousands	224,985	227,913	216,906	220,515	213,075	206,176	186,765	176,728	170,639	205,370	209,960	137,343	127,612	140,055	126,355	121,124	115,651	127,588	122,847	120,949
Inventory turnover		8.84	8.46	8.77	8.40	8.60	9.03	10.41	11.35	11.94	9.94	9.35	14.00	14.71	12.94	14.03	14.65	15.10	14.93	17.04	17.96

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,987,815K ÷ $224,985K
= 8.84

TTM Technologies Inc's inventory turnover ratio indicates how many times the company's inventory is sold and replaced over a specific period. Analyzing the provided data, we observe a trend in TTM Technologies Inc's inventory turnover over the reported periods.

The inventory turnover ratio for TTM Technologies Inc was relatively stable in the range of 14 to 17 times per year from March 2020 to June 2021, with a slight decrease towards the end of this period. However, from June 2021 onwards, there was a noticeable decline in the inventory turnover ratio, dropping to around 9 times by September 2022. This decrease suggests that the company might be holding onto its inventory for a longer duration before selling it.

Although there was a slight improvement in the inventory turnover ratio in the subsequent periods, it remained below the levels seen in the earlier years. The ratio further decreased significantly to around 8 times by December 2024, indicating that TTM Technologies Inc was taking longer to sell and replace its inventory, which could potentially lead to increased carrying costs and lower liquidity.

In conclusion, the decreasing trend in TTM Technologies Inc's inventory turnover ratio from June 2021 to December 2024 highlights a potential inefficiency in managing and turning over its inventory efficiently. Further analysis and management attention may be required to address this trend and optimize inventory management practices.