Verizon Communications Inc (VZ)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	57,919,000	45,169,000	41,288,000	48,939,000	47,256,000
Inventory	US$ in thousands	2,057,000	2,388,000	3,055,000	1,796,000	1,422,000
Inventory turnover		28.16	18.91	13.51	27.25	33.23

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $57,919,000K ÷ $2,057,000K
= 28.16

Verizon Communications Inc's inventory turnover has exhibited fluctuations over the past five years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced during a specific period.

In 2023, the inventory turnover ratio was 26.68, showing a slight increase from the previous year. This suggests that Verizon was able to sell and replace its inventory almost 27 times during the year.

Compared to 2021 and 2020, where the inventory turnover ratios were 18.43 and 28.51 respectively, there has been significant variability in Verizon's inventory management efficiency. The lower ratio in 2021 may indicate potential inventory management challenges or changes in the company's operations impacting inventory turnover.

In contrast, the notably higher inventory turnover ratio of 38.49 in 2019 suggests that Verizon effectively managed its inventory that year, possibly due to optimized inventory control practices or strong demand for its products.

Overall, while Verizon's recent inventory turnover ratios have shown some volatility, it is crucial to continue monitoring this metric to assess the company's inventory management effectiveness and operational efficiency.