SM Energy Co (SM)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,446,280	1,254,020	1,224,690	1,279,800	1,176,200
Inventory	US$ in thousands	—	56,442	48,677	24,095	31,203
Inventory turnover		—	22.22	25.16	53.11	37.70

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,446,280K ÷ $—K
= —

SM Energy Co's inventory turnover has shown fluctuations over the years. Starting at 37.70 in 2020, it increased significantly to 53.11 by the end of 2021, indicating a more efficient management of inventory during that period. However, there was a noticeable decline in inventory turnover to 25.16 by the end of 2022, suggesting a potential buildup of inventory relative to sales. This trend continued as the inventory turnover further decreased to 22.22 by the end of 2023, reflecting a potential inefficiency in managing inventory levels.

Unfortunately, the data for December 31, 2024, is missing, so it is not possible to analyze the inventory turnover for that year. It is essential for SM Energy Co to monitor and optimize its inventory turnover to ensure efficient management of inventory levels and minimize carrying costs. Further analysis and strategic adjustments may be necessary to improve inventory turnover and enhance overall operational efficiency.