Quanta Services Inc (PWR)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 19,794,210 | 18,491,200 | 17,444,460 | 16,706,490 | 16,251,420 | 15,883,060 | 14,813,690 | 13,617,910 | 12,355,120 | 11,300,540 | 10,967,140 | 10,517,940 | 10,603,090 | 7,874,600 | 8,231,630 | 8,591,300 | 8,598,370 | 8,633,870 | 8,287,900 | 8,074,260 |
| Inventory | US$ in thousands | 175,658 | 163,879 | 156,505 | 159,164 | 103,265 | 98,121 | 96,306 | 94,264 | 84,659 | 61,959 | 62,154 | 51,009 | 50,472 | 39,821 | 48,274 | 50,365 | 55,719 | 67,039 | 68,400 | 81,117 |
| Inventory turnover | 112.69 | 112.83 | 111.46 | 104.96 | 157.38 | 161.87 | 153.82 | 144.47 | 145.94 | 182.39 | 176.45 | 206.20 | 210.08 | 197.75 | 170.52 | 170.58 | 154.32 | 128.79 | 121.17 | 99.54 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $19,794,210K ÷ $175,658K
= 112.69
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory levels. It is calculated by dividing the cost of goods sold (COGS) by the average inventory balance.
In the case of Quanta Services, Inc., the inventory turnover has been relatively high and consistent over the past eight quarters. The inventory turnover ratios range from 94.14 to 143.92, indicating that the company is able to sell and replace its inventory quickly during each period.
A high inventory turnover ratio typically signifies effective inventory management, as it suggests that the company is not holding onto excess inventory that could become obsolete or incur carrying costs. A consistently high inventory turnover ratio like the one exhibited by Quanta Services, Inc. can indicate strong demand for the company's products or services and efficient supply chain operations.
Overall, the trend of high and stable inventory turnover ratios for Quanta Services, Inc. suggests that the company is effectively managing its inventory levels, which can lead to improved cash flow and profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023