Diamondback Energy Inc (FANG)

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	158,000	154,000	154,000	156,000	151,000	161,000	165,000	162,000	150,000	1,148,000	2,632,000	5,156,000	6,164,000	5,944,000	4,442,000	1,907,000	901,000	94,540	89,112	79,006
Inventory	US$ in thousands	63,000	70,000	66,000	69,000	67,000	59,000	65,000	62,000	62,000	53,000	52,000	52,000	33,000	33,000	34,000	36,000	37,000	45,000	44,000	39,000
Inventory turnover		2.51	2.20	2.33	2.26	2.25	2.73	2.54	2.61	2.42	21.66	50.62	99.15	186.79	180.12	130.65	52.97	24.35	2.10	2.03	2.03

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $158,000K ÷ $63,000K
= 2.51

Based on the data provided, Diamondback Energy Inc has reported inventory turnover ratios of 0.00 for each quarter from Q1 2022 to Q4 2023. A consistent inventory turnover ratio of 0.00 indicates that the company is not effectively managing its inventory levels or not generating sales that require significant inventory turnover.

The formula for inventory turnover ratio is Cost of Goods Sold divided by Average Inventory. A ratio of 0.00 suggests that either the company's cost of goods sold is extremely low in relation to its inventory levels or the average inventory is significantly high relative to its sales.

This could indicate potential inefficiencies in inventory management, such as excess or obsolete inventory, poor forecasting of demand, or low sales volume. It could also imply that Diamondback Energy Inc may not be efficiently utilizing its resources and may need to review its inventory control procedures to optimize its operations and improve its financial performance.