Now Inc (DNOW)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,806,000 | 1,653,000 | 1,292,000 | 1,658,000 | 2,525,000 |
| Inventory | US$ in thousands | 366,000 | 381,000 | 250,000 | 262,000 | 465,000 |
| Inventory turnover | 4.93 | 4.34 | 5.17 | 6.33 | 5.43 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,806,000K ÷ $366,000K
= 4.93
The inventory turnover ratio of NOW Inc has shown fluctuations over the past five years. The ratio indicates how many times the company's inventory has been sold and replaced during a specific period.
In 2023, the inventory turnover ratio increased to 4.88 from 4.28 in 2022, showing an improvement in the company's ability to manage its inventory efficiently. This implies that NOW Inc was able to sell and replace its inventory almost 4.88 times during the year.
Compared to the previous years, the inventory turnover ratio was lower in 2022 but has generally been relatively stable around the range of 5 in the years 2021, 2020, and 2019. This indicates that the company has been maintaining a consistent pace of inventory turnover in those years.
Overall, the company's inventory turnover ratio has shown some variability, but it seems to be within a reasonable range, suggesting that NOW Inc has been managing its inventory effectively in recent years.
Peer comparison
Dec 31, 2023