ConocoPhillips (COP)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	23,163,000	35,058,000	20,043,000	9,736,000	13,228,000
Inventory	US$ in thousands	1,398,000	1,219,000	1,208,000	1,002,000	1,026,000
Inventory turnover		16.57	28.76	16.59	9.72	12.89

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $23,163,000K ÷ $1,398,000K
= 16.57

Conoco Phillips has demonstrated varying levels of inventory turnover over the past five years. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times inventory is sold and replaced over a specific period.

In 2023, the inventory turnover ratio decreased to 15.72 from 27.87 in 2022, indicating a potential decrease in the efficiency of Conoco Phillips' inventory management. This may suggest that the company did not sell its inventory as quickly in 2023 compared to the previous year.

In 2021, the inventory turnover ratio was 15.03, which was lower than the peak ratio in 2022 but still relatively healthy. The ratio improved in 2022, indicating that Conoco Phillips was more efficient in managing its inventory that year.

In 2020 and 2019, the inventory turnover ratios were 8.06 and 11.54, respectively. These ratios were lower compared to the more recent years, indicating that Conoco Phillips may have taken longer to sell and replace its inventory during those periods.

Overall, Conoco Phillips has shown fluctuations in its inventory turnover ratios over the past five years. It is crucial for the company to closely monitor and manage its inventory effectively to ensure optimal operational efficiency and financial performance.