RPC Inc (RES)

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	1,134,019	1,192,577	1,177,508	1,174,880	1,197,642	1,219,923	1,283,182	1,272,204	1,171,132	1,059,585	917,581	800,255	735,948	652,303	583,103	519,028	576,269	657,578	807,982	1,016,341
Inventory	US$ in thousands	107,628	113,489	113,426	112,306	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
Inventory turnover		10.54	10.51	10.38	10.46	10.80	11.09	12.32	12.97	12.06	11.35	10.19	9.48	9.32	8.17	7.18	6.47	6.95	7.78	8.65	10.45

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,134,019K ÷ $107,628K
= 10.54

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. RPC Inc's inventory turnover has shown fluctuations over the past few years. The trend indicates a steady decrease from 10.45 in March 2020 to a low of 6.47 in March 2021 before gradually increasing to 12.97 in March 2023. However, there was a slight decline to 10.46 in March 2024.

A high inventory turnover ratio generally indicates efficient inventory management, as it shows that the company is selling its inventory quickly. Conversely, a low turnover ratio may suggest overstocking or slow-moving inventory.

Overall, RPC Inc's inventory turnover ratio has displayed fluctuations over the period, with some improvement in recent quarters. It is important for the company to closely monitor and manage its inventory levels to ensure optimal efficiency and profitability.