CVR Energy Inc (CVI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,974,000 | 9,766,000 | 7,024,000 | 4,119,000 | 5,662,000 |
| Inventory | US$ in thousands | 604,000 | 624,000 | 484,000 | 298,000 | 373,000 |
| Inventory turnover | 13.20 | 15.65 | 14.51 | 13.82 | 15.18 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $7,974,000K ÷ $604,000K
= 13.20
Inventory turnover measures how efficiently a company manages its inventory by indicating the number of times its inventory is sold and replaced within a given period. In the case of CVR Energy Inc, the inventory turnover ratio has fluctuated over the past five years, ranging from a low of 11.32 in 2020 to a high of 14.05 in 2022.
In 2023, the inventory turnover of CVR Energy Inc was 11.61, indicating that the company sold and replaced its inventory approximately 11.61 times during the year. A lower inventory turnover ratio compared to the previous year suggests that the company took longer to sell and replace its inventory in 2023. This could be due to various factors, such as changes in demand, supply chain disruptions, or overstocking.
Overall, while the inventory turnover of CVR Energy Inc has shown some variability, it generally indicates that the company efficiently manages its inventory by swiftly turning over its stock into sales. Further analysis of the reasons behind the fluctuations in inventory turnover ratios over the years can provide valuable insights into the company's inventory management practices and operational efficiency.
Peer comparison
Dec 31, 2023