Devon Energy Corporation (DVN)

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	545,000	493,000	474,000	458,000	448,000	446,000	441,000	439,000	428,000	440,000	452,000	473,000	675,000	678,000	715,000	687,000	3,737,000	4,386,000	5,065,000	5,825,000
Inventory	US$ in thousands	294,000	293,000	258,000	234,000	249,000	233,000	201,000	212,000	201,000	—	—	—	114,000	—	—	—	—	918,000	943,000	936,000
Inventory turnover		1.85	1.68	1.84	1.96	1.80	1.91	2.19	2.07	2.13	—	—	—	5.92	—	—	—	—	4.78	5.37	6.22

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $545,000K ÷ $294,000K
= 1.85

The inventory turnover of Devon Energy Corporation has shown a declining trend over the past few years. In March 2020, the inventory turnover was 6.22, indicating that the company was able to sell and replace its inventory approximately 6.22 times during that period. However, by December 2024, the inventory turnover had decreased to 1.85, signifying a slowdown in the rate at which the company is turning over its inventory.

The decreasing inventory turnover trend suggests potential inefficiencies in managing inventory levels or challenges in selling products promptly. A lower inventory turnover ratio could indicate excess inventory holding, obsolete stock, or difficulties in converting inventory into sales revenue.

It is important for Devon Energy Corporation to closely monitor and improve its inventory management practices to optimize inventory turnover and ensure efficient utilization of company resources. Efforts to streamline inventory processes, enhance demand forecasting accuracy, and address inventory obsolescence issues could help improve the company's inventory turnover ratio.