Wolfspeed Inc (WOLF)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 977,000 | 881,900 | 708,900 | 554,600 | 876,800 |
| Inventory | US$ in thousands | 440,700 | 284,900 | 227,000 | 166,600 | 121,900 |
| Inventory turnover | 2.22 | 3.10 | 3.12 | 3.33 | 7.19 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $977,000K ÷ $440,700K
= 2.22
The inventory turnover ratio for Wolfspeed Inc has shown a declining trend over the past five years. In 2020, the ratio was at its highest at 7.19, indicating that the company was able to sell and replace its inventory over 7 times during that year. However, since then, the ratio has been decreasing, reaching 2.22 in 2024.
A lower inventory turnover ratio suggests that Wolfspeed Inc is taking longer to sell its inventory or is holding onto inventory for a longer period of time before selling it. This could indicate inefficiencies in inventory management, overstocking, or slowing sales.
It is important for the company to closely monitor its inventory turnover ratio to ensure optimal inventory levels, streamline operations, and improve cash flow. Action may be needed to address any issues related to inventory management in order to improve overall efficiency and profitability.
Peer comparison
Jun 30, 2024