Oceaneering International Inc (OII)
Inventory turnover
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cost of revenue | US$ in thousands | 2,025,740 | 1,758,710 | 1,605,210 | 1,663,950 | 1,949,880 |
Inventory | US$ in thousands | 209,798 | 184,375 | 153,682 | 141,241 | 174,744 |
Inventory turnover | 9.66 | 9.54 | 10.45 | 11.78 | 11.16 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,025,740K ÷ $209,798K
= 9.66
Inventory turnover measures how efficiently a company is managing its inventory levels by calculating the number of times the inventory is sold and replaced within a specific period. Oceaneering International, Inc.'s inventory turnover has been consistently good over the past five years, ranging from 9.54 to 11.78 times. A higher inventory turnover ratio signifies that the company is selling its inventory more quickly, which is generally favorable as it indicates strong demand for its products or services.
The declining trend in inventory turnover from 2019 to 2023 may suggest that Oceaneering International, Inc. is taking longer to sell its inventory, which could potentially lead to higher carrying costs or obsolete inventory risks. This trend warrants further investigation into the company's sales strategies, production efficiency, and inventory management practices.
Overall, while Oceaneering International, Inc.'s inventory turnover remains relatively high, the downward trajectory indicates the need for monitoring and potentially optimizing inventory management processes to ensure continued operational efficiency and profitability.
Peer comparison
Dec 31, 2023