Patterson-UTI Energy Inc (PTEN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 315,899 | 119,958 | 145,360 | 533,663 | 184,195 |
| Inventory | US$ in thousands | 180,805 | 65,377 | 42,359 | 33,085 | 36,357 |
| Inventory turnover | 1.75 | 1.83 | 3.43 | 16.13 | 5.07 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $315,899K ÷ $180,805K
= 1.75
Patterson-UTI Energy Inc's inventory turnover ratio has been fluctuating over the past five years. The ratio indicates how efficiently the company is managing its inventory to generate sales.
In 2019, the inventory turnover was relatively high at 46.61, suggesting that the company was selling its inventory quickly during that period. However, this ratio decreased significantly in 2020 to 23.14, indicating a slower rate of inventory turnover.
The inventory turnover improved in 2021 and 2022, reaching 24.54 and 30.89, respectively. This increase suggests that the company managed its inventory more efficiently in these years, turning over its inventory at a faster rate.
In 2023, the inventory turnover ratio decreased to 15.31, indicating a decrease in the efficiency of inventory management compared to the previous year. This could be due to various factors, such as changes in demand, production inefficiencies, or other operational challenges.
Overall, Patterson-UTI Energy Inc's inventory turnover has shown variability over the years, highlighting the importance of closely monitoring and managing inventory levels to optimize operational efficiency and profitability.
Peer comparison
Dec 31, 2023