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.