APA Corporation (APA)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	615,000	646,000	577,000	503,000	607,000	566,000	584,000	580,000	497,000	453,000	426,000	468,000	4,986,000	6,270,000	6,391,000	6,689,000	2,304,000	1,543,000	1,572,000	1,360,000
Inventory	US$ in thousands	439,000	429,000	487,000	487,000	425,000	490,000	437,000	495,000	438,000	441,000	450,000	484,000	492,000	503,000	477,000	452,000	502,000	475,000	453,000	438,000
Inventory turnover		1.40	1.51	1.18	1.03	1.43	1.16	1.34	1.17	1.13	1.03	0.95	0.97	10.13	12.47	13.40	14.80	4.59	3.25	3.47	3.11

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $615,000K ÷ $439,000K
= 1.40

Based on the data provided, the inventory turnover for APA Corporation has consistently been reported as 0.00 for each quarter from Q1 2022 to Q4 2023. This indicates that the company is not effectively utilizing its inventory. A low or zero inventory turnover ratio may suggest excess or obsolete inventory levels, inefficient inventory management practices, or potentially slow sales.

A zero inventory turnover ratio could also imply that the company is not selling its existing inventory, which may lead to increased carrying costs and reduced cash flow. It is important for APA Corporation to closely monitor and improve its inventory management processes to optimize resource allocation, reduce holding costs, and enhance overall operational efficiency. Additional information about the company's sales trends, production levels, and inventory policies would be valuable in understanding the reasons behind the consistently low inventory turnover ratio.