Weatherford International PLC (WFRD)
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 | 463,000 | 290,000 | 290,000 | 296,000 | 319,000 | 358,000 | 335,000 | 340,000 | 320,000 | 783,000 | 807,000 | 1,190,000 | 1,280,000 | 2,190,000 | 2,948,000 | 3,335,000 | 4,083,000 | 4,146,000 | 4,244,000 | 4,368,000 |
| Inventory | US$ in thousands | 788,000 | 776,000 | 751,000 | 719,000 | 689,000 | 723,000 | 716,000 | 684,000 | 670,000 | 681,000 | 662,000 | 676,000 | 717,000 | 811,000 | 862,000 | 1,004,000 | 972,000 | 1,126,000 | 1,081,000 | 1,050,000 |
| Inventory turnover | 0.59 | 0.37 | 0.39 | 0.41 | 0.46 | 0.50 | 0.47 | 0.50 | 0.48 | 1.15 | 1.22 | 1.76 | 1.79 | 2.70 | 3.42 | 3.32 | 4.20 | 3.68 | 3.93 | 4.16 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $463,000K ÷ $788,000K
= 0.59
To analyze Weatherford International plc's inventory turnover, we can observe fluctuations in the ratio over multiple quarters. The inventory turnover ratios for Q4 2023 to Q1 2022 range from 3.97 to 4.38, indicating the number of times the company's inventory is sold and replaced during the period.
Weatherford International plc's inventory turnover has generally been stable, hovering around the 4.0 mark, which suggests efficient management of inventory. A higher inventory turnover ratio typically indicates effective inventory management and quicker sales, leading to reduced carrying costs and potential for higher profitability. In this case, the company has been able to maintain a healthy turnover rate consistently over the quarters.
Although Weatherford International plc's inventory turnover ratio has slightly fluctuated between quarters, the overall trend appears to be relatively stable, showcasing the company's ability to effectively manage its inventory levels and meet customer demand efficiently.
Peer comparison
Dec 31, 2023
Dec 31, 2023