RPC Inc (RES)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,036,650	1,197,640	1,171,130	735,948	576,269
Inventory	US$ in thousands	107,628	110,904	97,107	78,983	82,918
Inventory turnover		9.63	10.80	12.06	9.32	6.95

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,036,650K ÷ $107,628K
= 9.63

Inventory turnover is an important financial ratio that indicates how efficiently a company is managing its inventory. In the case of RPC Inc, the inventory turnover has shown a positive trend over the past five years, increasing from 6.95 in 2020 to 9.63 in 2024.

A higher inventory turnover ratio suggests that the company is selling its inventory more quickly, which can be a sign of good inventory management. It indicates that RPC Inc is efficiently managing its inventory levels and is able to quickly convert its inventory into sales.

However, it is important to note that inventory turnover needs to be analyzed in conjunction with other factors such as industry benchmarks and company-specific circumstances to get a complete picture of the company's inventory management efficiency. Nonetheless, based on the increasing trend in the inventory turnover ratio, RPC Inc appears to be effectively managing its inventory levels over the past five years.