Now Inc (DNOW)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,833,000 | 1,820,000 | 1,803,000 | 1,772,000 | 1,786,000 | 1,776,000 | 1,760,000 | 1,711,000 | 1,630,000 | 1,546,000 | 1,451,000 | 1,355,000 | 1,275,000 | 1,218,000 | 1,139,000 | 1,126,000 | 1,327,000 | 1,567,000 | 1,904,000 | 2,225,000 |
| Inventory | US$ in thousands | 352,000 | 364,000 | 399,000 | 428,000 | 366,000 | 415,000 | 424,000 | 406,000 | 381,000 | 361,000 | 331,000 | 296,000 | 250,000 | 244,000 | 250,000 | 247,000 | 262,000 | 318,000 | 370,000 | 434,000 |
| Inventory turnover | 5.21 | 5.00 | 4.52 | 4.14 | 4.88 | 4.28 | 4.15 | 4.21 | 4.28 | 4.28 | 4.38 | 4.58 | 5.10 | 4.99 | 4.56 | 4.56 | 5.06 | 4.93 | 5.15 | 5.13 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,833,000K ÷ $352,000K
= 5.21
For Now Inc, the inventory turnover ratio is a measure of how efficiently the company manages its inventory levels. The data shows fluctuations in the inventory turnover ratio over the past few years. The inventory turnover ratio indicates the number of times the company sells and replaces its inventory within a specific period.
Looking at the trend from March 2020 to December 2024, the inventory turnover ratio has varied between 4.14 and 5.21. The highest turnover ratio of 5.21 was recorded on December 31, 2024, while the lowest turnover ratio of 4.14 was observed on March 31, 2024.
The inventory turnover ratio suggests that on average, Now Inc has been able to turn its inventory into sales between approximately 4 to 5 times a year. A higher turnover ratio generally indicates efficient inventory management, while a lower ratio may suggest excess inventory levels or slow-moving inventory.
It is important for Now Inc to monitor its inventory turnover ratio regularly to ensure optimal inventory management, avoid inventory obsolescence, and maintain healthy cash flow. Any significant deviations in the ratio from the historical trend should be investigated to identify possible operational inefficiencies or changing market conditions impacting inventory turnover.
Peer comparison
Dec 31, 2024
Dec 31, 2024