Newmont Goldcorp Corp (NEM)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,245,000 | 8,462,000 | 6,492,000 | 5,578,000 | 746,000 |
| Inventory | US$ in thousands | 160,000 | 123,000 | 132,000 | 148,000 | 189,000 |
| Inventory turnover | 57.78 | 68.80 | 49.18 | 37.69 | 3.95 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $9,245,000K ÷ $160,000K
= 57.78
Newmont Corp's inventory turnover has shown some fluctuations over the past five years. The trend indicates that the company's efficiency in managing its inventory levels and turning over its inventory into sales has varied.
In 2023, the inventory turnover ratio was 4.03, which represents a decrease from the previous year's ratio. This suggests that the company took longer to sell its inventory in 2023 compared to 2022. It may indicate potentially slower sales or excess inventory levels during the year.
Looking back at 2022, the inventory turnover ratio was relatively high at 6.61, indicating that the company efficiently managed its inventory and quickly converted it into sales. This resulted in a higher rate of inventory turnover compared to the other years.
In 2021, the inventory turnover ratio was 5.84, showing a slight decrease from the previous year, but still at a relatively healthy level. This suggests that Newmont Corp continued to effectively manage its inventory during that year.
Similarly, in 2020 and 2019, the inventory turnover ratios were 5.21 and 5.12 respectively, indicating consistent performance in inventory management over these years.
Overall, the trend in Newmont Corp's inventory turnover ratios suggests some variability in the company's efficiency in managing its inventory levels and converting them into sales. It is essential for the company to closely monitor its inventory turnover and make necessary adjustments to optimize working capital and improve operational efficiency.