Marathon Oil Corporation (MRO)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 359,000 | 317,000 | 523,000 | 923,000 | 522,000 |
| Inventory | US$ in thousands | 186,000 | 125,000 | 77,000 | 76,000 | 72,000 |
| Inventory turnover | 1.93 | 2.54 | 6.79 | 12.14 | 7.25 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $359,000K ÷ $186,000K
= 1.93
The inventory turnover of Marathon Oil Corporation has been gradually decreasing over the past five years, from 9.89 in 2019 to 4.45 in 2023. This indicates that the company is selling its inventory less frequently compared to previous years. A lower inventory turnover may suggest inefficiencies in managing inventory levels or potential challenges in selling products quickly. It is essential for Marathon Oil Corporation to closely monitor its inventory management practices to improve efficiency and optimize working capital utilization. Further analysis of the company's operations and industry trends would provide more insights into the factors influencing this downward trend in inventory turnover.
Peer comparison
Dec 31, 2023