Chord Energy Corp (CHRD)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	3,955,786	3,403,852	3,032,434	2,738,430	2,464,843	2,407,489	2,212,840	2,032,951	1,856,370	1,582,516	1,217,440	1,002,623	848,429	731,361	704,971	621,303	843,286	1,216,973	1,479,324	1,564,207
Inventory	US$ in thousands	94,299	77,460	79,905	78,118	72,565	64,852	63,439	60,887	54,411	60,956	43,010	28,311	28,956	28,309	32,833	29,423	33,929	35,736	36,920	33,000
Inventory turnover		41.95	43.94	37.95	35.06	33.97	37.12	34.88	33.39	34.12	25.96	28.31	35.41	29.30	25.83	21.47	21.12	24.85	34.05	40.07	47.40

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,955,786K ÷ $94,299K
= 41.95

Chord Energy Corp's inventory turnover has shown a decreasing trend from 47.40 in March 2020 to 41.95 in December 2024. The inventory turnover ratio indicates how many times the company sells and replaces its inventory within a certain period. A higher turnover ratio suggests efficient management of inventory, while a lower ratio may indicate overstocking or slow-moving inventory.

In the case of Chord Energy Corp, the gradual decline in inventory turnover may signal potential issues such as poor inventory management, slow sales, or discrepancies in demand forecasting. It is crucial for the company to closely monitor its inventory levels and implement strategies to improve turnover rates, such as optimizing supply chain efficiency, enhancing demand forecasting accuracy, and identifying and reducing slow-moving inventory items.

While the inventory turnover ratio alone does not provide a complete picture of the company's overall financial performance, it is an important metric to consider in conjunction with other key financial indicators to assess Chord Energy Corp's operational efficiency and profitability.