Crescent Energy Co (CRGY)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 322,195 | 248,706 | 86,883 |
| Inventory | US$ in thousands | 94,727 | 40,286 | 0 |
| Inventory turnover | 3.40 | 6.17 | — |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $322,195K ÷ $94,727K
= 3.40
Based on the data provided, Crescent Energy Co's inventory turnover has shown a declining trend over the past two years. The inventory turnover ratio was 6.17 in 2022, indicating that the company converted its inventory into sales more efficiently compared to 2023, where the ratio dropped to 3.40.
A decreasing inventory turnover ratio may suggest that Crescent Energy Co is taking longer to sell its inventory, which could potentially lead to excess inventory levels or obsolete stock. This could tie up company resources and impact profitability.
However, it is important to note that the inventory turnover ratio of Crescent Energy Co for 2021 is not available, limiting the ability to fully assess the trend. Further analysis and comparison to industry averages and competitors' turnover ratios could provide more insights into the company's inventory management efficiency.
Peer comparison
Dec 31, 2023