NOV Inc. (NOV)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,860,000 | 6,750,000 | 5,903,000 | 4,750,000 | 5,656,000 |
| Inventory | US$ in thousands | 1,932,000 | 2,151,000 | 1,813,000 | 1,331,000 | 1,408,000 |
| Inventory turnover | 3.55 | 3.14 | 3.26 | 3.57 | 4.02 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,860,000K ÷ $1,932,000K
= 3.55
The inventory turnover ratio for NOV Inc. decreased from 4.02 in December 31, 2020, to 3.57 in December 31, 2021, indicating a slight decline in the efficiency of managing inventory. This trend continued with further decreases to 3.26, 3.14, and then an increase to 3.55 in the subsequent years of 2022, 2023, and 2024 respectively. A lower inventory turnover ratio may suggest that the company is carrying too much inventory relative to its sales demand which could tie up capital and lead to potential obsolescence or storage costs. Overall, NOV Inc. may need to focus on optimizing inventory management practices to enhance efficiency and liquidity.
Peer comparison
Dec 31, 2024