APA Corporation (APA)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,435,000 | 4,052,000 | 4,820,000 | 4,445,000 | 3,530,000 |
| Inventory | US$ in thousands | 425,000 | 453,000 | 427,000 | 473,000 | 492,000 |
| Inventory turnover | 12.79 | 8.94 | 11.29 | 9.40 | 7.17 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,435,000K ÷ $425,000K
= 12.79
APA Corporation's inventory turnover has shown an increasing trend over the last five years, starting at 7.17 in December 31, 2020, and reaching 12.79 by December 31, 2024. This indicates that the company has been able to sell its inventory more frequently in recent years. A higher inventory turnover ratio is generally seen as positive, suggesting efficient inventory management and potentially quicker sales cycles. The fluctuation in inventory turnover ratios from 2022 to 2023 might warrant further investigation into the reasons behind the variability. Overall, the increasing trend in inventory turnover for APA Corporation reflects a potentially positive sign of operational efficiency and effective inventory management.
Peer comparison
Dec 31, 2024