Chesapeake Energy Corp (CHK)

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	148,000	160,000	171,000	173,000	164,000	141,000	131,000	131,000	120,000	161,000	211,000	316,000	8,894,000	8,912,000	8,909,000	8,863,000	374,000	294,000	313,000	378,000
Inventory	US$ in thousands	711,000	954,000	489,000	1,393,000	915,000	60,000	11,000	10,000	14,000	9,000	10,000	72,000	19,000	—	—	884,000	134,000	272,000	224,000	-1,196,000
Inventory turnover		0.21	0.17	0.35	0.12	0.18	2.35	11.91	13.10	8.57	17.89	21.10	4.39	468.11	—	—	10.03	2.79	1.08	1.40	—

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $148,000K ÷ $711,000K
= 0.21

Chesapeake Energy Corp's inventory turnover ratio has shown significant fluctuations over the past few quarters. The inventory turnover ratio indicates the efficiency of inventory management by measuring how many times a company's inventory is sold and replaced over a period.

Looking at the data provided, we see a wide range of inventory turnover ratios, ranging from as low as 0.12 to as high as 468.11. This level of variability suggests instability or irregularities in Chesapeake Energy Corp's inventory management practices.

In the most recent quarter, the inventory turnover ratio was 0.21, indicating that the company's inventory is turning over at a slower rate compared to previous quarters. This could imply excess inventory levels or potential issues in demand forecasting or sales performance.

The significant spikes in inventory turnover ratios in some quarters, such as 468.11 in December 2020 and 11.91 in June 2022, suggest possible anomalies or extraordinary events affecting inventory levels during those periods.

Overall, based on the data provided, Chesapeake Energy Corp's inventory turnover ratio has been highly volatile, reflecting potential challenges in effectively managing and controlling its inventory levels. Additional analysis and examination of the company's inventory management strategies and practices may be necessary to identify areas for improvement.