SM Energy Co (SM)

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 1,481,951 1,333,283 1,309,578 1,279,631 1,254,024 1,221,852 1,200,061 1,217,057 1,224,692 1,273,710 1,306,330 1,316,084 1,279,802 1,221,403 1,159,922 1,091,053 1,176,204 1,247,216 1,310,418 1,378,497
Inventory US$ in thousands — — 0 0 56,442 25,524 74,138 81,062 48,677 42,207 18,308 9,649 24,095 24,514 — — 31,203 128,046 211,582 463,992
Inventory turnover — — — — 22.22 47.87 16.19 15.01 25.16 30.18 71.35 136.40 53.11 49.82 — — 37.70 9.74 6.19 2.97

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,481,951K ÷ $—K
= —

SM Energy Co's inventory turnover has fluctuated over the years, indicating changes in the efficiency of managing its inventory. The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period.

In March 2020, the inventory turnover was 2.97, showing that the inventory turned over approximately three times during that period. By June 2020, the turnover significantly improved to 6.19 and continued to rise in the following quarters, reaching a peak of 136.40 in March 2022.

However, after hitting this high point, the inventory turnover started to decline, dropping to 16.19 in June 2023. The ratio increased again in September 2023 to 47.87 but fell to 22.22 by December 2023.

The inconsistent trend in inventory turnover may suggest fluctuations in sales, production, or inventory management practices within the company. It is important to monitor this ratio closely to ensure optimal inventory levels that support business operations without tying up excess capital. Further analysis is recommended to understand the reasons behind the fluctuations in inventory turnover and to take appropriate actions to improve efficiency.