RPC Inc (RES)

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	1,380,971	1,036,924	1,096,414	1,077,711	953,307	1,202,075	1,053,274	929,472	859,520	612,552	544,282	481,066	749,402	1,003,228	1,179,421	1,400,811	1,278,205	1,376,665	1,434,296	1,477,741
Inventory	US$ in thousands	110,904	109,969	104,194	98,073	97,107	93,346	90,090	84,381	78,983	79,881	81,198	80,165	82,918	84,566	93,392	97,267	100,947	107,028	118,606	124,464
Inventory turnover		12.45	9.43	10.52	10.99	9.82	12.88	11.69	11.02	10.88	7.67	6.70	6.00	9.04	11.86	12.63	14.40	12.66	12.86	12.09	11.87

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,380,971K ÷ $110,904K
= 12.45

The inventory turnover of RPC, Inc. has shown a generally increasing trend over the past eight quarters, starting from a value of 8.60 in Q1 2022 to a peak of 12.08 in Q1 2023. This indicates that the company has been more efficient in managing its inventory during this period.

A high inventory turnover ratio signifies that RPC, Inc. is selling its inventory more frequently, potentially reducing the risk of obsolete or excess inventory. This could be a positive sign of efficient inventory management and effective sales strategies.

However, it is important to note that a very high inventory turnover ratio may also indicate inventory shortages, which could lead to lost sales opportunities or disruptions in the supply chain. Therefore, it is crucial for RPC, Inc. to strike a balance in maintaining optimal inventory levels to support its operations effectively.

Overall, the increasing trend in inventory turnover for RPC, Inc. suggests improving operational efficiency and effective management of inventory levels, which can positively impact the company's financial performance and profitability.