Newmont Goldcorp Corp (NEM)
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 | 12,133,000 | 11,951,000 | 10,655,000 | 9,775,000 | 8,807,000 | 8,174,000 | 8,376,000 | 8,676,000 | 8,715,000 | 7,904,000 | 7,788,000 | 7,301,000 | 7,119,000 | 7,549,000 | 7,473,000 | 7,217,000 | 7,314,000 | 7,416,000 | 7,495,000 | 7,762,000 |
| Inventory | US$ in thousands | 2,184,000 | 2,175,000 | 2,148,000 | 2,130,000 | 2,642,000 | 1,956,000 | 1,969,000 | 1,972,000 | 1,753,000 | 1,694,000 | 1,674,000 | 1,756,000 | 1,787,000 | 1,939,000 | 1,897,000 | 1,861,000 | 1,790,000 | 1,788,000 | 1,797,000 | 971,000 |
| Inventory turnover | 5.56 | 5.49 | 4.96 | 4.59 | 3.33 | 4.18 | 4.25 | 4.40 | 4.97 | 4.67 | 4.65 | 4.16 | 3.98 | 3.89 | 3.94 | 3.88 | 4.09 | 4.15 | 4.17 | 7.99 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $12,133,000K ÷ $2,184,000K
= 5.56
Newmont Goldcorp Corp's inventory turnover has exhibited fluctuations over the given time period. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company sells and replaces its inventory within a specific time frame.
From March 31, 2020, to December 31, 2024, the inventory turnover ratio varied between a low of 3.33 and a high of 7.99, with an upward trend observed until September 30, 2022, followed by a relatively stable period.
A high inventory turnover ratio implies that the company is selling its inventory quickly, which can be positive as it reduces the risk of holding obsolete or excess inventory. Conversely, a low ratio may suggest inefficient inventory management, potentially leading to higher storage costs and wastage.
The company saw improvements in its inventory turnover ratio from March 31, 2020, to June 30, 2022, indicating more efficient inventory management during this period. However, there was a slight decline in the ratio from September 30, 2022, to December 31, 2024.
Overall, Newmont Goldcorp Corp should continue monitoring its inventory turnover ratio to ensure optimal inventory management practices are in place, balancing the need to maintain adequate inventory levels while minimizing holding costs and the risk of inventory obsolescence.