Vicor Corporation (VICR)
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 | 271,989 | 270,037 | 273,605 | 279,153 | 285,910 | 299,213 | 303,692 | 307,115 | 304,859 | 291,668 | 272,221 | 258,943 | 250,744 | 242,648 | 243,205 | 237,009 | 228,398 | 218,497 | 211,733 | 205,103 |
| Inventory | US$ in thousands | 106,032 | 105,761 | 109,084 | 112,316 | 106,579 | 104,570 | 106,606 | 107,382 | 101,410 | 94,336 | 83,055 | 73,861 | 67,322 | 63,409 | 57,129 | 54,256 | 57,269 | 58,169 | 55,630 | 53,352 |
| Inventory turnover | 2.57 | 2.55 | 2.51 | 2.49 | 2.68 | 2.86 | 2.85 | 2.86 | 3.01 | 3.09 | 3.28 | 3.51 | 3.72 | 3.83 | 4.26 | 4.37 | 3.99 | 3.76 | 3.81 | 3.84 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $271,989K ÷ $106,032K
= 2.57
Vicor Corporation's inventory turnover has shown a gradual decline over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced during a specific period. The declining trend in Vicor Corporation's inventory turnover suggests that the company is holding onto its inventory for a longer period before selling it.
In March 2020, the inventory turnover ratio stood at 3.84, indicating that the company's inventory turned over approximately 3.84 times during that period. The ratio continued to decrease gradually, reaching its lowest point of 2.49 in March 2024. This decrease could imply inefficiencies in inventory management, leading to potential concerns about holding excessive or obsolete inventory.
A declining inventory turnover ratio may also indicate slowing sales or difficulties in selling products, potentially resulting in higher carrying costs and tying up cash in inventory. It is essential for the company to monitor and adjust its inventory management practices to improve efficiency and optimize resources.
Overall, the trend of declining inventory turnover at Vicor Corporation highlights the importance of closely monitoring inventory levels, sales performance, and supply chain management to ensure optimal operations and financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024