Coterra Energy Inc (CTRA)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	868,000	855,000	864,000	879,000	892,000	1,351,872	1,213,324	1,049,515	863,671	440,673	398,680	400,078	404,596	181,513	174,626	175,019	173,764	177,164	177,346	173,249
Inventory	US$ in thousands	59,000	64,000	65,000	56,000	63,000	57,000	46,000	41,000	39,000	12,781	17,395	15,870	15,000	14,929	17,948	18,249	13,932	18,195	19,381	18,277
Inventory turnover		14.71	13.36	13.29	15.70	14.16	23.72	26.38	25.60	22.15	34.48	22.92	25.21	26.97	12.16	9.73	9.59	12.47	9.74	9.15	9.48

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $868,000K ÷ $59,000K
= 14.71

Based on the provided data, Coterra Energy Inc's inventory turnover has been declining steadily over the past eight quarters. The inventory turnover ratio for Q4 2023, Q3 2023, Q2 2023, and Q1 2023 are all recorded as 0.00, indicating that the company has not been efficiently managing its inventory during these quarters.

Furthermore, the inventory turnover ratio was relatively higher in the previous quarters, with values of 1.75 in Q4 2022, 2.64 in Q3 2022, and 3.35 in Q2 2022. This decline in inventory turnover suggests that Coterra Energy Inc is taking longer to sell its inventory or may be holding excess inventory on hand.

A consistently low inventory turnover ratio may indicate potential issues such as overstocking, obsolete inventory, or declining demand for the company's products. Management should closely monitor and address these inventory management inefficiencies to improve operational performance and financial health.