Archrock Inc (AROC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 618,971 | 574,333 | 545,568 | 480,287 | 606,173 |
| Inventory | US$ in thousands | 89,686 | 81,761 | 84,622 | 72,869 | 63,670 |
| Inventory turnover | 6.90 | 7.02 | 6.45 | 6.59 | 9.52 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $618,971K ÷ $89,686K
= 6.90
From the data provided, the inventory turnover for Archrock Inc has fluctuated over the past five years. In December 2020, the inventory turnover was 9.52, indicating that the company turned over its inventory approximately 9.52 times during that year. However, the inventory turnover decreased to 6.59 in December 2021, and further declined to 6.45 in December 2022.
It seems that the company's efficiency in managing its inventory decreased during those years, as it took longer to sell off its inventory. The inventory turnover did show a slight improvement to 7.02 in December 2023, but then decreased to 6.90 in December 2024.
Overall, the decreasing trend in inventory turnover for Archrock Inc suggests that the company may have excess inventory or is facing challenges in selling its products efficiently. This could potentially lead to higher storage costs and a risk of obsolescence. Further analysis of the company's inventory management practices and supply chain efficiency may be warranted to address these issues and improve overall performance.
Peer comparison
Dec 31, 2024