Diamondback Energy Inc (FANG)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 166,000 | 158,000 | 155,000 | 6,116,000 | 901,000 |
| Inventory | US$ in thousands | 63,000 | 67,000 | 62,000 | 33,000 | 37,000 |
| Inventory turnover | 2.63 | 2.36 | 2.50 | 185.33 | 24.35 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $166,000K ÷ $63,000K
= 2.63
The inventory turnover ratio for Diamondback Energy Inc has been consistently reported as 0.00 for the past five years. This means that the company is not effectively managing its inventory in generating sales. A low or zero inventory turnover ratio may indicate inefficient inventory management, overstocking, slow-moving inventory, or declining sales. It is crucial for the company to monitor and improve its inventory turnover ratio to optimize its working capital and operational efficiency. Further analysis of the factors impacting inventory management and sales performance is necessary to address this issue and enhance overall financial performance.
Peer comparison
Dec 31, 2023