AT&T Inc (T)

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	83,870,000	66,862,000	80,720,000	80,999,000	83,715,000	66,535,000	69,432,000	72,897,000	73,720,000	86,609,000	87,484,000	90,237,000	89,925,000	82,052,000	82,517,000	80,743,000	81,845,000	74,331,000	74,325,000	72,076,000
Inventory	US$ in thousands	2,177,000	2,520,000	2,348,000	2,791,000	3,123,000	3,935,000	3,241,000	3,153,000	3,464,000	3,088,000	2,810,000	3,347,000	3,592,000	13,948,000	14,514,000	13,276,000	2,864,000	12,014,000	10,685,000	10,270,000
Inventory turnover		38.53	26.53	34.38	29.02	26.81	16.91	21.42	23.12	21.28	28.05	31.13	26.96	25.03	5.88	5.69	6.08	28.58	6.19	6.96	7.02

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $83,870,000K ÷ $2,177,000K
= 38.53

Inventory turnover is a key financial ratio that measures how effectively a company manages its inventory. It indicates the number of times a company sells and replaces its inventory within a specific period. A higher inventory turnover ratio is generally preferred, as it suggests that inventory is being sold quickly, leading to less risk of obsolescence or carrying costs.

Analyzing the data provided for AT&T, Inc., we observe fluctuations in the inventory turnover ratio over the last eight quarters. The inventory turnover ratio ranged from a low of 15.73 in Q3 2022 to a high of 24.19 in Q1 2022. The highest turnover was achieved in Q1 2022, indicating that AT&T efficiently sold and replaced its inventory during that period.

In the most recent quarter, Q4 2023, AT&T's inventory turnover stood at 23.02, which is a significant improvement compared to the previous quarters, reflecting a faster rate of inventory turnover. This suggests that AT&T is managing its inventory efficiently and selling products quickly, possibly due to strong demand or effective inventory management strategies.

Overall, the trend in AT&T's inventory turnover indicates fluctuations but generally improving efficiency in managing inventory levels. However, it is essential to monitor this ratio continuously to ensure optimal inventory management practices and alignment with business strategies.