Schlumberger NV (SLB)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,241,000 | 723,000 | 677,000 | 641,000 | 736,000 |
| Inventory | US$ in thousands | 4,375,000 | 4,387,000 | 3,999,000 | 3,272,000 | 3,354,000 |
| Inventory turnover | 0.28 | 0.16 | 0.17 | 0.20 | 0.22 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,241,000K ÷ $4,375,000K
= 0.28
Based on the provided data, Schlumberger NV's inventory turnover has been on a declining trend over the past five years, decreasing from 0.22 in December 2020 to 0.16 in December 2023 before showing a slight improvement to 0.28 in December 2024.
A low inventory turnover ratio indicates that the company is not efficiently managing its inventory levels. A declining inventory turnover ratio could suggest an excess of inventory that may be outdated or obsolete, leading to higher storage and holding costs for Schlumberger NV.
The sudden increase in inventory turnover in December 2024 might indicate that the company made efforts to optimize its inventory management processes, potentially reducing excess inventory levels and improving efficiency in selling its products.
It is important for Schlumberger NV to continue monitoring and improving its inventory turnover ratio to ensure effective inventory management, minimize carrying costs, and enhance overall operational efficiency.
Peer comparison
Dec 31, 2024