Schlumberger NV (SLB)

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	723,000	673,000	684,000	672,000	677,000	687,000	672,000	656,000	641,000	-2,462,000	-2,453,000	-2,437,000	766,000	3,789,000	3,901,000	4,018,000	930,000	1,542,000	1,538,000	1,548,000
Inventory	US$ in thousands	4,387,000	4,305,000	4,360,000	4,286,000	3,999,000	4,143,000	3,968,000	3,719,000	3,272,000	3,296,000	3,267,000	3,303,000	3,354,000	3,542,000	3,601,000	4,148,000	4,130,000	4,341,000	4,389,000	4,224,000
Inventory turnover		0.16	0.16	0.16	0.16	0.17	0.17	0.17	0.18	0.20	-0.75	-0.75	-0.74	0.23	1.07	1.08	0.97	0.23	0.36	0.35	0.37

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $723,000K ÷ $4,387,000K
= 0.16

The inventory turnover ratio measures the efficiency of a company in managing its inventory. It is calculated by dividing the cost of goods sold by the average inventory for a certain period. A higher turnover ratio indicates that the company is selling and replenishing its inventory at a faster rate.

Looking at Schlumberger Ltd.'s inventory turnover over the past eight quarters, we observe a consistent range between 5.19 and 6.06. This suggests that the company has been effectively managing its inventory, with a relatively stable turnover rate. The slight fluctuations in the ratio over the quarters are normal and do not indicate any significant concerns.

The high turnover ratio is generally a positive sign, as it implies that Schlumberger Ltd. is efficiently converting its inventory into sales. However, it is essential to consider industry norms and business cycles when evaluating inventory turnover. Furthermore, a high turnover ratio might also indicate a potential risk of stockouts if not managed carefully.

In summary, based on the data provided, Schlumberger Ltd.'s inventory turnover has been relatively stable and within a healthy range, demonstrating efficient inventory management practices.