Tidewater Inc (TDW)

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	876,997	860,362	904,257	818,888	741,188	668,202	589,237	570,338	518,591	472,223	421,417	382,304	378,589	373,306	372,407	372,103	388,894	409,551	423,659	436,633
Inventory	US$ in thousands	34,319	26,670	26,908	24,767	31,933	27,489	22,495	24,448	30,830	20,764	21,182	13,252	12,606	13,335	15,404	15,676	15,876	17,808	20,580	21,944
Inventory turnover		25.55	32.26	33.61	33.06	23.21	24.31	26.19	23.33	16.82	22.74	19.90	28.85	30.03	27.99	24.18	23.74	24.50	23.00	20.59	19.90

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $876,997K ÷ $34,319K
= 25.55

Tidewater Inc's inventory turnover has shown fluctuations over the period under review, ranging from a low of 16.82 for the quarter ended December 31, 2022, to a high of 33.61 for the quarter ended June 30, 2024. Generally, a higher inventory turnover ratio indicates that the company is able to sell its inventory more quickly, which is generally favorable.

The inventory turnover ratio improved from the beginning of the period, reaching its peak in the middle of 2024 before declining slightly in the subsequent quarter. This may indicate effective inventory management practices, efficient sales processes, or changing customer demand trends.

It's worth noting that the inventory turnover ratio decreased towards the end of the period, potentially signaling slower sales or overstocking. This could be a concern if not managed effectively, as excessive inventory levels tie up working capital and can lead to potential obsolescence issues.

Overall, analyzing Tidewater Inc's inventory turnover ratio provides insights into the company's operational efficiency and inventory management practices, highlighting areas where improvements can be made to optimize inventory levels and turnover.