NOV Inc. (NOV)
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 | 6,728,000 | 6,760,000 | 6,755,000 | 6,896,000 | 6,751,000 | 6,534,000 | 6,338,000 | 6,120,000 | 5,903,000 | 5,588,000 | 5,223,000 | 4,991,000 | 4,750,000 | 4,828,000 | 4,917,000 | 5,090,000 | 5,656,000 | 6,168,000 | 6,898,000 | 7,609,000 |
| Inventory | US$ in thousands | 1,932,000 | 2,123,000 | 2,157,000 | 2,278,000 | 2,151,000 | 2,277,000 | 2,199,000 | 2,036,000 | 1,813,000 | 1,755,000 | 1,591,000 | 1,440,000 | 1,331,000 | 1,325,000 | 1,322,000 | 1,357,000 | 1,408,000 | 1,745,000 | 1,929,000 | 2,032,000 |
| Inventory turnover | 3.48 | 3.18 | 3.13 | 3.03 | 3.14 | 2.87 | 2.88 | 3.01 | 3.26 | 3.18 | 3.28 | 3.47 | 3.57 | 3.64 | 3.72 | 3.75 | 4.02 | 3.53 | 3.58 | 3.74 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,728,000K ÷ $1,932,000K
= 3.48
The inventory turnover for NOV Inc. has shown some fluctuations over the analyzed period. The company's inventory turnover ratio ranged from a low of 2.87 times to a high of 4.02 times. Generally, a higher inventory turnover ratio indicates that the company is selling its inventory more efficiently.
From March 31, 2020, to June 30, 2022, the inventory turnover ratio fluctuated between 3.28 and 4.02, with a general downward trend. This may suggest that NOV Inc. took longer to sell its inventory during these periods.
From September 30, 2022, to December 31, 2024, the inventory turnover ratio continued to fluctuate, ranging from 2.87 to 3.48. This indicates that the company's ability to sell its inventory improved slightly during this latter period.
Overall, NOV Inc. should examine the reasons behind the fluctuations in its inventory turnover ratio to identify opportunities for improving inventory management efficiency. Conducting a thorough analysis of inventory levels, demand forecasting, and supply chain processes could help optimize inventory turnover and potentially enhance the company's financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024