Vicor Corporation (VICR)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 285,910 | 304,859 | 250,744 | 228,398 | 202,676 |
| Inventory | US$ in thousands | 106,579 | 101,410 | 67,322 | 57,269 | 49,187 |
| Inventory turnover | 2.68 | 3.01 | 3.72 | 3.99 | 4.12 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $285,910K ÷ $106,579K
= 2.68
Inventory turnover measures how efficiently a company is managing its inventory by assessing the number of times it sells and replaces its inventory within a specific period. A higher inventory turnover ratio indicates better inventory management.
Vicor Corp.'s inventory turnover has been fluctuating over the past five years, ranging from 1.88 to 2.88. A decreasing trend was observed from 2020 to 2023, indicating a potential inefficiency in managing and selling inventory during this period. However, the overall inventory turnover ratio remains above 1, suggesting that the company is effectively turning over its inventory at least once a year.
For a more in-depth analysis, it would be beneficial to compare Vicor Corp.'s inventory turnover with industry averages and competitors to gain further insights into its inventory management efficiency. Additionally, investigating the reasons behind the fluctuating ratios and evaluating inventory levels and sales trends can provide valuable context for understanding the company's inventory turnover performance.
Peer comparison
Dec 31, 2023