Diamondback Energy Inc (FANG)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 994,000 | 3,541,000 | 2,865,000 | 2,566,000 | 2,169,000 |
| Inventory | US$ in thousands | 116,000 | 63,000 | 67,000 | 62,000 | 33,000 |
| Inventory turnover | 8.57 | 56.21 | 42.76 | 41.39 | 65.73 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $994,000K ÷ $116,000K
= 8.57
Diamondback Energy Inc's inventory turnover has shown fluctuations over the years. In 2020, the inventory turnover was 65.73, indicating that the company effectively turned over its inventory multiple times during that year. However, this ratio decreased to 41.39 in 2021, showing a decline in the efficiency of inventory management.
In the following years, there was some improvement as the inventory turnover increased to 42.76 in 2022 and further to 56.21 in 2023. These numbers suggest that the company was able to manage its inventory more efficiently during those years.
However, there was a significant drop in inventory turnover to 8.57 in 2024, indicating a potential issue with managing inventory levels effectively. This sharp decrease may require further investigation to understand the reasons behind this decline and implement strategies to improve inventory turnover in the future.
Peer comparison
Dec 31, 2024