Verizon Communications Inc (VZ)

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	53,438,000	46,865,000	43,427,000	43,796,000	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
Inventory	US$ in thousands	2,247,000	2,523,000	1,841,000	2,076,000	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
Inventory turnover		23.78	18.58	23.59	21.10	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $53,438,000K ÷ $2,247,000K
= 23.78

Verizon Communications Inc's inventory turnover has fluctuated over the reported periods, indicating changes in the efficiency with which the company manages its inventory.

The inventory turnover ratio measures how many times a company sells and replaces its inventory within a specific period. A higher turnover ratio generally indicates that the company is selling its products more quickly, which is often considered favorable.

From March 31, 2020, to June 30, 2021, Verizon's inventory turnover steadily increased from 21.89 to 33.63, suggesting improved efficiency in managing its inventory during that period. However, from September 30, 2021, to December 31, 2021, the ratio decreased significantly to 13.51, indicating a potential slowdown in inventory turnover.

The trend continued with a further decline in inventory turnover to 11.24 by March 31, 2022, signaling a potential challenge in efficiently managing inventory during that period. Subsequently, there was a slight increase in turnover, reaching 24.59 by June 30, 2023, before declining to 18.58 by September 30, 2024.

Overall, Verizon's inventory turnover has shown fluctuations, suggesting varying levels of efficiency in managing inventory over the reported periods. Further analysis would be required to understand the reasons behind these fluctuations and their impact on the company's operations and financial performance.