Schlumberger NV (SLB)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 723,000 | 677,000 | 641,000 | 736,000 | 10,330,000 |
| Inventory | US$ in thousands | 4,387,000 | 3,999,000 | 3,272,000 | 3,354,000 | 4,130,000 |
| Inventory turnover | 0.16 | 0.17 | 0.20 | 0.22 | 2.50 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $723,000K ÷ $4,387,000K
= 0.16
The inventory turnover ratio measures how efficiently a company manages its inventory. It is calculated by dividing the cost of goods sold by the average inventory for a specific period. A higher inventory turnover ratio indicates that the company is selling and replenishing its inventory quickly.
Over the last five years, Schlumberger Ltd.'s inventory turnover has shown fluctuations. In 2023, the inventory turnover ratio was 6.06, compared to 5.73 in 2022 and 5.89 in 2021. This indicates that the company's inventory turnover improved in 2023 compared to the two previous years. However, in 2020 and 2019, the inventory turnover was higher at 6.26 and 6.95, respectively.
The fluctuations in the inventory turnover ratio may be indicative of varying sales volumes and inventory management practices. Investors and analysts should consider other factors, such as industry trends and company strategy, to gain a comprehensive understanding of Schlumberger Ltd.'s inventory management efficiency.
Peer comparison
Dec 31, 2023