Vicor Corporation (VICR)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 271,989 | 285,910 | 304,859 | 250,744 | 228,398 |
| Inventory | US$ in thousands | 106,032 | 106,579 | 101,410 | 67,322 | 57,269 |
| Inventory turnover | 2.57 | 2.68 | 3.01 | 3.72 | 3.99 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $271,989K ÷ $106,032K
= 2.57
The inventory turnover ratio for Vicor Corporation has been declining over the past few years, signaling potential inefficiencies in managing its inventory levels.
In 2020, the inventory turnover was 3.99, indicating that Vicor was able to sell and replace its inventory nearly 4 times within the year. However, this ratio declined to 3.72 in 2021, 3.01 in 2022, 2.68 in 2023, and further to 2.57 in 2024.
A decreasing inventory turnover ratio may suggest that Vicor is holding onto excess inventory or facing challenges in selling its products efficiently. This can tie up working capital and lead to increased storage costs or risk of obsolescence.
Vicor should closely monitor its inventory management practices, ensure optimal stock levels, streamline supply chain processes, and potentially renegotiate supplier agreements to improve its inventory turnover and overall operational efficiency.
Peer comparison
Dec 31, 2024