Coterra Energy Inc (CTRA)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 971,000 | 876,000 | 917,000 | 866,000 | 406,699 |
| Inventory | US$ in thousands | 46,000 | 59,000 | 63,000 | 39,000 | 15,000 |
| Inventory turnover | 21.11 | 14.85 | 14.56 | 22.21 | 27.11 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $971,000K ÷ $46,000K
= 21.11
Based on the data provided, Coterra Energy Inc's inventory turnover has experienced fluctuations over the past five years. The inventory turnover ratio measures how efficiently the company manages its inventory by showing how many times the inventory is sold and replaced during a specific period.
In December 2020, the inventory turnover ratio was 27.11, indicating that the company's inventory was turning over approximately 27 times during that year. This high ratio suggests efficient inventory management. However, by December 2022, the ratio had decreased to 14.56, signaling a decline in the efficiency of managing inventory.
The trend continued into December 2023 with a slight increase in the inventory turnover ratio to 14.85. This suggests a modest improvement in managing inventory compared to the previous year. By December 2024, the ratio jumped to 21.11, indicating an increase in inventory turnover efficiency compared to the previous year.
Overall, it is essential for Coterra Energy Inc to monitor its inventory turnover ratio continuously to ensure optimal inventory management. Fluctuations in this ratio can indicate potential issues such as overstocking or understocking, which could impact the company's profitability and cash flow.
Peer comparison
Dec 31, 2024