Viper Energy Ut (VNOM)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	60,882	196,519	56,372	135,545	120,345
Inventory	US$ in thousands	—	358	9,328	0	—
Inventory turnover		—	548.94	6.04	—	—

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $60,882K ÷ $—K
= —

The Inventory turnover ratio for Viper Energy Ut shows a significant fluctuation over the years based on the provided data. In 2020 and 2021, the ratio is marked as not available, indicating a lack of information or possibly low inventory movement during those periods.

However, in 2022, the inventory turnover ratio increased notably to 6.04, suggesting a quicker conversion of inventory into sales during that year. This improvement may reflect a more efficient inventory management process or increased demand for the company's products.

The most striking observation is the substantial spike in the inventory turnover ratio to 548.94 in 2023, indicating an exceptionally rapid rate at which inventory is being sold relative to the amount of inventory held. Such an extraordinarily high ratio could be a result of various factors such as inventory optimization, demand surge, or supply chain efficiencies.

In 2024, the information on the inventory turnover ratio is again not available. The lack of data for this year makes it challenging to assess the inventory management performance for that period.

Overall, the data suggests that Viper Energy Ut experienced significant variations in its inventory turnover ratio over the years, with 2023 standing out as a year of exceptional efficiency in converting inventory into sales. Further information or context would be beneficial to fully understand the reasons behind these fluctuations and to make more accurate interpretations.