Now Inc (DNOW)

Inventory turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 1,838,000 1,786,000 1,630,000 1,275,000 1,327,000
Inventory US$ in thousands 352,000 366,000 381,000 250,000 262,000
Inventory turnover 5.22 4.88 4.28 5.10 5.06

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,838,000K ÷ $352,000K
= 5.22

Now Inc's inventory turnover has fluctuated over the past five years, with the highest turnover rate recorded on December 31, 2024, at 5.22 times. This indicates that the company efficiently managed its inventory during that period. However, there was a noticeable decrease in inventory turnover on December 31, 2022, at 4.28 times, suggesting a potential inefficiency in managing inventory during that particular year. Overall, the company's inventory turnover has shown a generally stable trend, staying within a range of 4.28 to 5.22 times over the five-year period. This consistency may indicate that Now Inc has a well-structured inventory management system in place to optimize the use of its inventory resources.