Peabody Energy Corp (BTU)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 692,000 | 701,000 | 698,600 | 665,400 | 666,300 | 453,900 | 457,200 | 462,600 | 461,700 | 486,100 | 503,800 | 1,951,500 | 1,967,800 | 1,885,800 | 1,905,300 | 473,300 | 376,100 | 96,000 | 63,400 | 52,700 |
| Inventory | US$ in thousands | 351,800 | 352,000 | 312,900 | 331,500 | 296,100 | 277,400 | 252,900 | 269,100 | 226,700 | 224,500 | 232,500 | 241,400 | 261,600 | 319,700 | 301,600 | 269,200 | 331,500 | 294,800 | 322,100 | 268,500 |
| Inventory turnover | 1.97 | 1.99 | 2.23 | 2.01 | 2.25 | 1.64 | 1.81 | 1.72 | 2.04 | 2.17 | 2.17 | 8.08 | 7.52 | 5.90 | 6.32 | 1.76 | 1.13 | 0.33 | 0.20 | 0.20 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $692,000K ÷ $351,800K
= 1.97
Peabody Energy Corp's inventory turnover has fluctuated over the past few quarters, with values ranging from as low as 0.20 to as high as 8.08. The inventory turnover ratio measures how efficiently a company is managing its inventory by indicating how many times during a period inventory is sold and replaced.
A higher inventory turnover ratio is generally preferred as it suggests that inventory is being sold quickly, reducing the risk of obsolescence or spoilage. Peabody Energy's inventory turnover ratio has shown significant volatility, particularly in the most recent quarters.
The sharp increase in inventory turnover in the first quarter of 2021 and fourth quarter of 2020 may indicate improved inventory management efficiency during those periods. However, the notable decline in inventory turnover in the second and third quarters of 2021 raises some concerns about inventory management practices during that time.
Overall, Peabody Energy Corp's inventory turnover ratio fluctuates, indicating varying degrees of efficiency in managing and selling inventory. An in-depth analysis of the company's inventory management processes and strategies may be necessary to understand the reasons behind these fluctuations and to identify opportunities for improvement.
Peer comparison
Dec 31, 2023
Dec 31, 2023