Peabody Energy Corp (BTU)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 663,300 | 664,800 | 461,700 | 1,967,800 | 871,100 |
| Inventory | US$ in thousands | 351,800 | 296,100 | 226,700 | 261,600 | 331,500 |
| Inventory turnover | 1.89 | 2.25 | 2.04 | 7.52 | 2.63 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $663,300K ÷ $351,800K
= 1.89
Peabody Energy Corp's inventory turnover has experienced fluctuations over the past five years. In 2020, the company demonstrated a significantly higher inventory turnover rate of 7.52, indicating that the company was able to sell and replace its inventory multiple times during the year. This high turnover could suggest efficient inventory management or possibly a more rapid turnover of inventory due to strong demand or changes in the business environment.
However, in the subsequent years, the inventory turnover rate decreased, with 2023 showing the lowest turnover rate of 1.89. This decline could indicate potential challenges in managing inventory levels or possibly a slowdown in sales relative to the amount of inventory held. It is important for Peabody Energy Corp to monitor and address the factors contributing to this decreasing trend to optimize their inventory management efficiency and overall profitability.
Peer comparison
Dec 31, 2023