Verizon Communications Inc (VZ)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	42,926,000	47,308,000	46,628,000	45,585,000	45,169,000	42,771,000	41,610,000	41,121,000	41,288,000	46,840,000	47,786,000	47,779,000	48,939,000	35,789,000	35,588,000	35,751,000	34,600,000	39,014,000	39,422,000	40,297,000
Inventory	US$ in thousands	2,057,000	2,240,000	1,896,000	2,381,000	2,388,000	3,133,000	3,646,000	3,659,000	3,055,000	2,303,000	1,421,000	1,303,000	1,796,000	1,457,000	1,289,000	1,633,000	1,422,000	1,538,000	1,167,000	1,417,000
Inventory turnover		20.87	21.12	24.59	19.15	18.91	13.65	11.41	11.24	13.51	20.34	33.63	36.67	27.25	24.56	27.61	21.89	24.33	25.37	33.78	28.44

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $42,926,000K ÷ $2,057,000K
= 20.87

Verizon Communications Inc's inventory turnover ratio has shown a positive trend over the past eight quarters. The inventory turnover ratio measures how efficiently a company manages its inventory. A higher turnover ratio indicates that the company is selling its inventory more quickly.

In Q4 2023, Verizon's inventory turnover ratio stood at 26.68, which was higher than the previous quarter. This signifies that Verizon is managing its inventory more efficiently, with inventory being sold and replaced at a faster rate.

Comparing to the same quarter in the previous year, the inventory turnover ratio has shown significant improvement. Q4 2023 inventory turnover of 26.68 is higher than Q4 2022 turnover of 24.76, indicating better inventory management practices.

Overall, the increasing trend in Verizon's inventory turnover ratio is a positive indicator of effective inventory management and suggests that the company is efficiently utilizing its resources. High inventory turnover can often lead to lower storage costs, less risk of obsolete inventory, and ultimately better financial performance.