ONEOK Inc (OKE)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 11,929,000 | 17,910,000 | 12,256,700 | 5,110,150 | 6,788,040 |
| Inventory | US$ in thousands | 639,000 | 432,000 | 427,880 | 227,810 | 304,926 |
| Inventory turnover | 18.67 | 41.46 | 28.65 | 22.43 | 22.26 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $11,929,000K ÷ $639,000K
= 18.67
Inventory turnover is a key financial ratio that measures how efficiently a company is managing its inventory. A high inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently.
Looking at the inventory turnover of Oneok Inc. over the past five years, we see significant fluctuations in the ratio. In 2022, the inventory turnover was exceptionally high at 120.21, suggesting that the company was able to sell and replenish its inventory multiple times throughout the year.
On the other hand, in 2023, the inventory turnover decreased to 15.16, which is still considered a healthy turnover rate but significantly lower compared to the previous year. This could indicate potential challenges in managing inventory levels efficiently or changes in sales patterns.
In the years 2021, 2020, and 2019, the inventory turnover ratios were 80.10, 13.77, and 13.40, respectively, showing some fluctuations but overall remaining within a reasonable range. It is important for investors and analysts to further investigate the reasons behind these fluctuations and assess how they may impact the company's operational efficiency and financial performance.
Overall, while the inventory turnover ratio for Oneok Inc. has shown variability over the past five years, it is essential to delve deeper into the company's operations and industry trends to gain a more comprehensive understanding of its inventory management practices.
Peer comparison
Dec 31, 2023