California Resources Corp (CRC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 519,000 | 362,000 | 310,000 | 343,000 | 2,205,000 |
| Inventory | US$ in thousands | 90,000 | 72,000 | 60,000 | 60,000 | 67,000 |
| Inventory turnover | 5.77 | 5.03 | 5.17 | 5.72 | 32.91 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $519,000K ÷ $90,000K
= 5.77
The inventory turnover ratio for California Resources Corp has been declining over the years. As of December 31, 2019, the ratio stood at 32.91, indicating that the company was able to efficiently turn over its inventory more than 32 times during that year. However, by December 31, 2024, the inventory turnover ratio decreased to 5.77, suggesting a slowdown in the rate at which the company is selling its inventory.
This decline in inventory turnover could be a cause for concern as it may indicate issues with managing inventory levels, potential overstocking, or difficulties in converting inventory into sales. California Resources Corp may need to closely monitor its inventory management practices and consider strategies to improve the efficiency of its inventory turnover to enhance overall operational performance.
Peer comparison
Dec 31, 2024