ONEOK Inc (OKE)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 13,311,000 | 11,929,000 | 17,910,000 | 12,256,700 | 5,110,150 |
| Inventory | US$ in thousands | 748,000 | 639,000 | 432,000 | 427,880 | 227,810 |
| Inventory turnover | 17.80 | 18.67 | 41.46 | 28.65 | 22.43 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $13,311,000K ÷ $748,000K
= 17.80
ONEOK Inc's inventory turnover has shown a fluctuating trend over the past five years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company's inventory is sold and replaced during a specific period.
In December 2020, ONEOK Inc's inventory turnover was 22.43, signifying that the company converted its inventory into sales approximately 22.43 times during that year. The ratio improved to 28.65 in December 2021, indicating a more efficient management of inventory.
The inventory turnover ratio increased significantly to 41.46 by December 2022, representing a substantial improvement in inventory turnover efficiency. However, in December 2023, the ratio decreased to 18.67, suggesting a potential slowdown in inventory turnover.
By December 2024, the inventory turnover ratio further declined to 17.80, indicating a decrease in the frequency at which inventory is converted to sales compared to the previous year. This trend may warrant further investigation into the company's inventory management practices to understand the factors contributing to the fluctuations in inventory turnover.
Overall, while ONEOK Inc demonstrated strong inventory turnover in some years, the fluctuations in the ratio over the period highlight the importance of regularly assessing and optimizing inventory management strategies to maintain operational efficiency and financial health.
Peer comparison
Dec 31, 2024