APA Corporation (APA)

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	5,542,000	4,985,000	4,669,000	4,120,000	4,052,000	4,144,000	4,378,000	4,700,000	4,820,000	4,859,000	4,628,000	4,354,000	4,445,000	4,135,000	3,815,000	3,630,000	3,530,000	3,793,000	4,148,000	4,430,000
Inventory	US$ in thousands	425,000	501,000	466,000	472,000	453,000	443,000	488,000	488,000	427,000	491,000	473,000	529,000	473,000	476,000	479,000	502,000	492,000	503,000	477,000	452,000
Inventory turnover		13.04	9.95	10.02	8.73	8.94	9.35	8.97	9.63	11.29	9.90	9.78	8.23	9.40	8.69	7.96	7.23	7.17	7.54	8.70	9.80

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,542,000K ÷ $425,000K
= 13.04

To analyze APA Corporation's inventory turnover, we observe a fluctuating trend over the years from March 31, 2020, to December 31, 2024. The inventory turnover ratio measures the efficiency of the company in managing its inventory by showing how many times the inventory is sold and replaced during a specific period.

- The inventory turnover ratio ranged from a high of 13.04 in December 31, 2024, to a low of 7.17 in December 31, 2020, showing variations in the company's ability to turn over its inventory efficiently.
- In general, a higher inventory turnover ratio indicates that the company is selling goods more quickly, which can be a positive indicator of efficient inventory management.
- A lower inventory turnover ratio may imply slower sales or excess inventory, potentially leading to storage costs or obsolescence risks.
- The ratio peaked in December 31, 2024, suggesting that APA Corporation was able to sell and replace its inventory more frequently, which could result in increased cash flow and reduced holding costs.
- However, the ratio decreased in the following months, indicating a potential slowdown in inventory turnover which might require further investigation to understand the underlying reasons.

Overall, the analysis of APA Corporation's inventory turnover reveals a dynamic trend that can provide insights into the company's operational efficiency and potential challenges in inventory management.