Viper Energy Ut (VNOM)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	156,721	129,642	110,787	177,868	85,667
Inventory	US$ in thousands	358	9,328	0	—	0
Inventory turnover		437.77	13.90	—	—	—

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $156,721K ÷ $358K
= 437.77

The inventory turnover of Viper Energy Ut has shown a significant increase over the past five years, reaching 437.77 as of December 31, 2023, compared to 13.90 as of December 31, 2022. This substantial increase indicates that the company has been more efficient in managing its inventory during the most recent year.

Improving inventory turnover is generally a positive indicator as it suggests that inventory is being sold and replenished more frequently, which can lead to better cash flow management and potentially higher profitability. It also indicates that the company is effectively managing its inventory levels, balancing between carrying enough inventory to meet demand without excess holding costs.

It is worth noting that there is missing data for inventory turnover for the years 2021, 2020, and 2019 in the provided table, which limits the ability to analyze the trend over a longer period. However, based on the available data, the significant increase in inventory turnover from 2022 to 2023 is a positive sign for Viper Energy Ut's operational efficiency and financial performance.