PBF Energy Inc (PBF)

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	33,487,500	34,882,400	35,717,600	35,635,000	35,926,200	36,748,700	38,434,400	41,925,400	42,151,700	40,140,200	35,966,800	30,524,700	26,366,200	22,336,100	19,298,900	14,920,300	16,745,600	18,976,300	21,239,900	25,415,600
Inventory	US$ in thousands	2,595,300	2,605,700	2,864,200	2,891,300	3,183,100	3,180,900	2,832,300	2,854,900	2,763,600	2,689,500	2,976,300	2,893,500	2,505,100	2,831,400	2,636,200	2,312,400	1,686,200	1,485,600	1,620,200	986,500
Inventory turnover		12.90	13.39	12.47	12.32	11.29	11.55	13.57	14.69	15.25	14.92	12.08	10.55	10.53	7.89	7.32	6.45	9.93	12.77	13.11	25.76

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $33,487,500K ÷ $2,595,300K
= 12.90

The inventory turnover ratio is used to measure how efficiently a company manages its inventory by indicating how many times within a specific period the company sells and replaces its inventory.

Analyzing the inventory turnover of PBF Energy Inc from March 31, 2020, to December 31, 2024, reveals fluctuations in the efficiency of inventory management over time.

The inventory turnover ratio started at a relatively high level of 25.76 in March 2020, indicating that PBF Energy was efficiently selling and replacing its inventory. However, this ratio declined significantly to 6.45 by March 2021, suggesting potential issues in managing inventory levels or sales performance during this period.

There was a slight improvement in inventory turnover to 12.08 by June 2022, but the ratio continued to fluctuate over the following quarters. By December 31, 2024, the inventory turnover stood at 12.90, showing better efficiency compared to the lowest point in March 2021 but still below the initial levels in 2020.

Overall, the analysis of PBF Energy Inc's inventory turnover indicates fluctuations in the efficiency of managing inventory during the period under review. Further investigation into the reasons behind these fluctuations may provide insights into the company's operational performance and inventory management strategies.