Patterson-UTI Energy Inc (PTEN)
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 | 560,868 | 547,668 | 457,176 | 392,250 | 315,167 | 233,592 | 135,385 | 120,849 | 119,956 | 150,739 | 148,024 | 149,166 | 145,230 | 115,237 | 116,811 | 118,299 | 523,374 | 527,174 | 556,850 | 566,153 |
| Inventory | US$ in thousands | 167,023 | 172,750 | 172,405 | 183,178 | 180,805 | 186,514 | 68,036 | 65,275 | 65,377 | 55,216 | 53,528 | 45,302 | 42,359 | 34,924 | 33,763 | 34,369 | 33,085 | 33,693 | 34,977 | 34,142 |
| Inventory turnover | 3.36 | 3.17 | 2.65 | 2.14 | 1.74 | 1.25 | 1.99 | 1.85 | 1.83 | 2.73 | 2.77 | 3.29 | 3.43 | 3.30 | 3.46 | 3.44 | 15.82 | 15.65 | 15.92 | 16.58 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $560,868K ÷ $167,023K
= 3.36
Based on the inventory turnover data provided for Patterson-UTI Energy Inc, we observe some fluctuations and trends in the efficiency of managing inventory over the stated periods.
The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a specific period. A higher turnover ratio indicates that inventory is selling more quickly and efficiently.
From March 31, 2020 to June 30, 2020, the inventory turnover decreased slightly from 16.58 to 15.92 but remained relatively high. However, from March 31, 2021 to December 31, 2024, the turnover ratio consistently decreased significantly. This decline indicates that the company's inventory is moving more slowly and may be a cause for concern in terms of managing liquidity, obsolete inventory, or demand forecasting.
An inventory turnover ratio below industry averages or historical performance can suggest overstocking, poor sales, or ineffective inventory management practices. The substantial drop in inventory turnover observed for Patterson-UTI Energy Inc from March 31, 2021 to December 31, 2024 could imply potential challenges in sales and inventory optimization. Monitoring and addressing the factors contributing to the declining turnover ratio are crucial to improving operational efficiency and financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024