Liberty Oilfield Services Inc (LBRT)

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	3,469,344	3,499,085	3,500,318	3,490,705	3,589,816	3,691,201	3,705,986	3,569,277	3,334,903	3,063,834	2,764,495	2,560,302	2,378,077	1,963,806	1,497,411	1,063,273	962,690	1,076,706	1,364,858	1,699,124
Inventory	US$ in thousands	203,469	197,563	206,386	210,060	205,865	211,747	201,069	196,675	214,454	185,647	163,652	139,721	134,593	116,795	120,015	129,338	118,568	76,989	81,167	87,616
Inventory turnover		17.05	17.71	16.96	16.62	17.44	17.43	18.43	18.15	15.55	16.50	16.89	18.32	17.67	16.81	12.48	8.22	8.12	13.99	16.82	19.39

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,469,344K ÷ $203,469K
= 17.05

Inventory turnover is a measure of how efficiently a company manages its inventory by showing how many times a company's inventory is sold and replaced within a particular period. For Liberty Oilfield Services Inc, the inventory turnover has fluctuated over the reported periods.

From March 31, 2020 to December 31, 2020, the inventory turnover decreased significantly from 19.39 to 8.12, indicating a slower rate of selling and replenishing inventory. There was a slight increase in inventory turnover by March 31, 2021, but it remained relatively low compared to earlier periods.

From June 30, 2021, there was a noticeable improvement in inventory turnover, reaching 12.48, suggesting a better management of inventory levels. The trend continued to improve at subsequent reporting periods, with inventory turnover peaking at 18.43 by June 30, 2023. This signifies that the company became more efficient in selling and replacing inventory during this period.

Towards the end of the reporting period by December 31, 2024, the inventory turnover decreased slightly to 17.05. Despite the slight decline, the overall trend indicates that Liberty Oilfield Services Inc has managed to improve its inventory turnover and optimize its inventory management practices over the analyzed period.