Tidewater Inc (TDW)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	836,498	626,906	462,922	539,951	479,655
Inventory	US$ in thousands	31,933	30,830	12,606	15,876	21,856
Inventory turnover		26.20	20.33	36.72	34.01	21.95

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $836,498K ÷ $31,933K
= 26.20

Tidewater Inc's inventory turnover has shown fluctuations over the past five years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times it sells and replaces its inventory within a given period.

In 2023, the inventory turnover ratio increased to 26.20 from 20.33 in 2022, suggesting that Tidewater Inc managed its inventory more efficiently during the year. This increase may indicate better inventory management, faster sales, or more effective production planning.

Comparing 2023 to earlier years, the inventory turnover ratio was lower in 2022 but higher than 2021 and 2019. This can be interpreted as Tidewater Inc improving its inventory management compared to 2021 and 2019 but not reaching the peak level achieved in 2021.

Overall, while the inventory turnover has fluctuated, the recent increase in 2023 indicates that Tidewater Inc may have implemented more effective inventory management practices. It would be important to continue monitoring this ratio to ensure consistent efficiency in managing inventory levels in the future.