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

Company name
Symbol
Inventory turnover
Peabody Energy Corp
BTU
1.89
Alpha Metallurgical Resources Inc
AMR
10.69
Arch Resources Inc
ARCH
10.80