Dril-Quip Inc (DRQ)
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 | 308,503 | 283,383 | 263,490 | 267,442 | 265,935 | 260,565 | 257,689 | 249,565 | 242,357 | 245,296 | 249,673 | 255,071 | 269,698 | 281,303 | 290,115 | 297,045 | 295,007 | 292,704 | 287,794 | 289,464 |
| Inventory | US$ in thousands | 194,593 | 183,250 | 164,523 | 152,770 | 146,004 | 140,530 | 139,794 | 141,289 | 145,724 | 194,720 | 202,382 | 194,911 | 212,536 | 219,007 | 212,412 | 197,035 | 205,062 | 201,655 | 194,513 | 194,547 |
| Inventory turnover | 1.59 | 1.55 | 1.60 | 1.75 | 1.82 | 1.85 | 1.84 | 1.77 | 1.66 | 1.26 | 1.23 | 1.31 | 1.27 | 1.28 | 1.37 | 1.51 | 1.44 | 1.45 | 1.48 | 1.49 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $308,503K ÷ $194,593K
= 1.59
Based on the historical inventory turnover figures of Dril-Quip, Inc., the company's inventory turnover ratio has shown slight fluctuations over the past eight quarters. The inventory turnover ratio measures how efficiently a company manages its inventory by calculating how many times a company sells and replaces its inventory during a specific period.
Dril-Quip's inventory turnover ratio ranged from 1.55 to 1.85 over the analyzed period. A higher inventory turnover ratio is generally favorable as it indicates that the company is selling its inventory quickly, reducing the risk of obsolete stock and increasing cash flow.
The lowest inventory turnover ratio of 1.55 was recorded in Q3 2023, while the highest ratio of 1.85 was observed in Q3 2022. The declining trend in inventory turnover from Q3 2022 to Q3 2023 may suggest that Dril-Quip has been less efficient in managing and selling its inventory during this period.
Overall, Dril-Quip's inventory turnover ratio has been relatively stable, hovering around 1.60, which indicates a moderate efficiency in managing its inventory levels. However, the company may benefit from further analysis and potential improvements in inventory management to enhance operational efficiency and profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023