Oceaneering International Inc (OII)

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	2,175,667	2,153,154	2,124,788	2,073,021	2,025,735	1,922,856	1,866,290	1,817,450	1,758,707	1,700,132	1,643,181	1,624,993	1,605,210	1,596,925	1,600,051	1,554,928	1,663,948	1,865,884	1,904,378	1,973,497
Inventory	US$ in thousands	222,849	241,576	231,305	216,914	209,798	208,200	208,827	197,610	184,375	167,762	169,245	162,261	153,682	128,869	129,133	130,612	141,241	148,527	160,447	166,360
Inventory turnover		9.76	8.91	9.19	9.56	9.66	9.24	8.94	9.20	9.54	10.13	9.71	10.01	10.45	12.39	12.39	11.90	11.78	12.56	11.87	11.86

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,175,667K ÷ $222,849K
= 9.76

Oceaneering International Inc's inventory turnover has shown some fluctuations over the past few years based on the provided data. The inventory turnover ratio measures how efficiently a company is managing its inventory levels by assessing how many times per year the company sells and replaces its inventory.

From March 31, 2020, to December 31, 2021, the inventory turnover remained relatively stable, fluctuating between 10.45 and 12.56. This indicates that the company was able to effectively manage its inventory during this period.

However, from March 31, 2022, to December 31, 2024, there was a downward trend in the inventory turnover ratio, dropping from 10.01 to 9.76. This decreasing trend suggests that Oceaneering International Inc may have been holding onto its inventory for longer periods, which could potentially lead to higher carrying costs and obsolescence risk.

It is important for the company to monitor and analyze the reasons behind this declining inventory turnover trend to identify potential inefficiencies in inventory management. Implementing strategies to optimize inventory levels, streamline procurement processes, and improve demand forecasting could help improve the inventory turnover ratio and enhance overall operational efficiency.