Chord Energy Corp (CHRD)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	3,945,500	2,459,050	1,856,370	909,837	843,286
Inventory	US$ in thousands	94,299	72,565	54,411	28,956	33,929
Inventory turnover		41.84	33.89	34.12	31.42	24.85

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,945,500K ÷ $94,299K
= 41.84

Chord Energy Corp's inventory turnover has displayed a consistent upward trend over the past five years. The turnover ratio increased from 24.85 in 2020 to 41.84 in 2024, indicating that the company is efficiently managing its inventory levels. This suggests that Chord Energy Corp is converting its inventory into sales at a faster rate, which could potentially lead to lower carrying costs and increased liquidity. The company's ability to turn over its inventory more rapidly over the years reflects effective inventory management practices, possibly resulting in improved profitability and operational efficiency.