Chesapeake Energy Corp (CHK)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 148,000 | 164,000 | 120,000 | 8,894,000 | 376,000 |
| Inventory | US$ in thousands | 711,000 | 915,000 | 14,000 | 19,000 | 134,000 |
| Inventory turnover | 0.21 | 0.18 | 8.57 | 468.11 | 2.81 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $148,000K ÷ $711,000K
= 0.21
The inventory turnover for Chesapeake Energy Corp has fluctuated significantly over the past five years. In 2023 and 2022, the inventory turnover ratios were 0.21 and 0.18, respectively, indicating a very low rate of inventory turnover. This could suggest inefficiencies in managing inventory levels or potential issues with demand or production.
In contrast, the inventory turnover ratio significantly increased to 8.57 in 2021, before experiencing a dramatic spike to 468.11 in 2020. A sharp increase in these years typically indicates that the company is selling inventory at a much faster rate compared to the previous years, which could signal efficient inventory management, improved demand forecasting, or effective sales strategies.
However, the inventory turnover ratio dropped to 2.81 in 2019, which still represents a reasonable turnover rate but is significantly lower than the extraordinary levels seen in 2020 and 2021.
Overall, the substantial fluctuations in Chesapeake Energy Corp's inventory turnover ratios over the years suggest varying levels of efficiency in managing inventory levels and selling goods. Further analysis of the underlying reasons behind these changes would provide a more comprehensive understanding of the company's inventory management practices and operational performance.
Peer comparison
Dec 31, 2023