Oceaneering International Inc (OII)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,175,670 | 2,025,740 | 1,758,710 | 1,605,210 | 1,663,950 |
| Inventory | US$ in thousands | 222,849 | 209,798 | 184,375 | 153,682 | 141,241 |
| Inventory turnover | 9.76 | 9.66 | 9.54 | 10.45 | 11.78 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,175,670K ÷ $222,849K
= 9.76
Oceaneering International Inc's inventory turnover has shown a declining trend over the past five years. The ratio decreased from 11.78 in December 2020 to 10.45 in December 2021, and further to 9.54 in December 2022. Although there was a slight increase to 9.66 in December 2023, it dropped again to 9.76 in December 2024.
A decreasing inventory turnover ratio indicates that the company is holding onto its inventory for a longer period before selling it. This could suggest inefficiencies in inventory management or slower sales growth compared to the level of inventory held. Oceaneering International Inc may need to evaluate its inventory management practices to improve efficiency and optimize its working capital utilization.
Peer comparison
Dec 31, 2024