Texas Instruments Incorporated (TXN)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	7,390,000	6,889,000	6,344,000	6,310,000	6,257,000	6,156,000	6,023,000	5,939,000	5,968,000	5,916,000	5,789,000	5,443,000	5,192,000	3,321,000	3,839,000	4,570,000	5,234,000	5,754,000	5,885,000	5,994,000
Inventory	US$ in thousands	3,999,000	3,908,000	3,729,000	3,288,000	2,757,000	2,404,000	2,199,000	2,060,000	1,910,000	1,863,000	1,856,000	1,890,000	1,955,000	2,072,000	2,136,000	2,003,000	2,001,000	2,040,000	2,079,000	2,131,000
Inventory turnover		1.85	1.76	1.70	1.92	2.27	2.56	2.74	2.88	3.12	3.18	3.12	2.88	2.66	1.60	1.80	2.28	2.62	2.82	2.83	2.81

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,390,000K ÷ $3,999,000K
= 1.85

The inventory turnover of Texas Instruments Inc. has gradually decreased over the past eight quarters, indicating that the company is holding onto its inventory for longer periods. This could potentially signal inefficiencies in inventory management or slowing sales. The current inventory turnover ratio of 1.63 in Q4 2023 is the lowest observed in the provided data, suggesting a slower rate of inventory turnover compared to previous quarters. It is important for Texas Instruments Inc. to closely monitor this trend and take appropriate actions to optimize inventory levels and improve overall operational efficiency.