Liberty Oilfield Services Inc (LBRT)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,469,340 | 3,589,820 | 3,334,900 | 2,378,820 | 950,194 |
| Inventory | US$ in thousands | 203,469 | 205,865 | 214,454 | 134,593 | 118,568 |
| Inventory turnover | 17.05 | 17.44 | 15.55 | 17.67 | 8.01 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,469,340K ÷ $203,469K
= 17.05
Based on the data provided, the inventory turnover ratio for Liberty Oilfield Services Inc has shown a positive trend over the years. In 2020, the ratio was 8.01, indicating that the company turned over its inventory approximately 8 times during the year. This ratio increased significantly to 17.67 in 2021, and continued to remain relatively stable around the 17 mark in the subsequent years.
A higher inventory turnover ratio signifies that the company is efficiently managing its inventory levels and selling its products quickly. This trend suggests that Liberty Oilfield Services Inc has been effectively controlling its inventory levels and improving its operational efficiency in recent years.
Overall, the consistent increase and maintenance of the inventory turnover ratio at a relatively high level demonstrate the company's strong performance in managing its inventory effectively to support its business operations.
Peer comparison
Dec 31, 2024