ConocoPhillips (COP)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 38,362,000 | 29,668,000 | 48,481,000 | 31,060,000 | 17,943,000 |
| Inventory | US$ in thousands | 1,809,000 | 1,398,000 | 1,219,000 | 1,208,000 | 1,002,000 |
| Inventory turnover | 21.21 | 21.22 | 39.77 | 25.71 | 17.91 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $38,362,000K ÷ $1,809,000K
= 21.21
ConocoPhillips' inventory turnover ratio has shown fluctuations over the past five years. The ratio increased from 17.91 in 2020 to 39.77 in 2022, indicating that the company was able to manage its inventory more efficiently during that period. However, there was a significant drop in inventory turnover to 21.22 in 2023, followed by a slight decrease to 21.21 in 2024.
The varying inventory turnover ratios suggest potential changes in ConocoPhillips' inventory management practices and sales trends. A higher ratio typically indicates that the company is selling its inventory more frequently, which can free up working capital and reduce holding costs. Conversely, a lower ratio may signal excess inventory levels or challenges in selling products efficiently.
It is important for ConocoPhillips to assess the reasons behind the fluctuations in inventory turnover and take appropriate actions to optimize inventory levels and enhance operational efficiency. Regular monitoring and analysis of inventory turnover can help the company make informed decisions to improve profitability and overall performance.
Peer comparison
Dec 31, 2024