Antero Resources Corp (AR)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	280,530	279,062	327,267	239,349	972,305
Inventory	US$ in thousands	—	-7,331	3,448,390	3,421,220	2,719,940
Inventory turnover		—	—	0.09	0.07	0.36

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $280,530K ÷ $—K
= —

The inventory turnover ratio for Antero Resources Corp has shown a declining trend over the years. In 2020, the inventory turnover was 0.36, indicating that the company's inventory was sold and replaced approximately 0.36 times during the year. However, by December 31, 2021, the inventory turnover dropped significantly to 0.07, suggesting that the company was less efficient in managing its inventory.

Although there was a slight improvement in 2022 with an inventory turnover of 0.09, the ratio remains relatively low compared to industry standards. Notably, the data for December 31, 2023 and December 31, 2024 is not available (denoted as “—”), which makes it difficult to assess any potential improvements or setbacks in the company's inventory turnover efficiency during these periods.

The decreasing trend in inventory turnover can raise concerns about the company's inventory management practices, such as overstocking, obsolete inventory, or inefficiencies in sales and production processes. It is important for Antero Resources Corp to closely monitor and optimize its inventory turnover ratio to ensure effective resource utilization and profitability in the long run.