Cactus Inc (WHD)

Inventory turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 693,421 690,668 445,921 317,141 236,948
Inventory US$ in thousands 226,796 205,625 161,283 119,817 87,480
Inventory turnover 3.06 3.36 2.76 2.65 2.71

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $693,421K ÷ $226,796K
= 3.06

Cactus Inc's inventory turnover has exhibited varying trends over the past five years. As of December 31, 2020, the inventory turnover ratio was 2.71, indicating that the company turned over its inventory approximately 2.71 times during that year. Subsequently, the ratio slightly decreased to 2.65 by December 31, 2021, before experiencing a gradual increase to 2.76 by December 31, 2022. Notably, there was a significant surge in inventory turnover to 3.36 by December 31, 2023, suggesting a more efficient management of inventory during that period. However, the ratio declined to 3.06 by December 31, 2024. Overall, the fluctuations in inventory turnover may reflect changes in the company's sales volume, production efficiency, or inventory management practices. Further analysis of operational and market factors could provide additional insights into the reasons behind these fluctuations and their impact on the company's overall performance.