Quanta Services Inc (PWR)
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 | 20,351,670 | 19,928,310 | 19,110,790 | 18,573,030 | 18,020,340 | 16,702,690 | 15,700,120 | 14,983,020 | 14,544,740 | 14,121,250 | 13,168,920 | 12,113,610 | 11,026,950 | 10,147,700 | 9,841,750 | 9,440,620 | 9,541,830 | 9,765,000 | 10,131,800 | 10,500,520 |
| Inventory | US$ in thousands | 260,181 | 275,852 | 235,102 | 224,341 | 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 |
| Inventory turnover | 78.22 | 72.24 | 81.29 | 82.79 | 102.59 | 101.92 | 100.32 | 94.14 | 140.85 | 143.92 | 136.74 | 128.51 | 130.25 | 163.78 | 158.34 | 185.08 | 189.05 | 245.22 | 209.88 | 208.49 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $20,351,670K ÷ $260,181K
= 78.22
Quanta Services Inc's inventory turnover ratio, calculated as cost of goods sold divided by average inventory, provides insight into how efficiently the company is managing its inventory.
Based on the data provided, we can observe fluctuations in the inventory turnover ratio over the years. The highest turnover was observed in the period from September 2020 to December 2020, with values ranging from 189.05 to 245.22. This indicates that during this period, Quanta Services Inc was able to sell and replace its inventory at a fast pace.
Subsequently, there was a gradual decline in the inventory turnover ratio, reaching its lowest point in March 2024 with a value of 82.79. This downward trend may suggest that the company is taking longer to sell its inventory or may have excess inventory on hand.
It is essential for Quanta Services Inc to carefully manage its inventory levels to avoid potential risks such as obsolescence and storage costs. Monitoring and optimizing the inventory turnover ratio can help the company improve cash flow, reduce holding costs, and enhance overall operational efficiency. Additionally, analyzing the inventory turnover in conjunction with other financial metrics can provide a more comprehensive view of the company's performance and financial health.
Peer comparison
Dec 31, 2024
Dec 31, 2024