Cactus Inc (WHD)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 161,026 | 76,408 | 54,874 | 53,034 | 61,810 |
| Inventory | US$ in thousands | 180,025 | 140,783 | 101,817 | 72,880 | 103,599 |
| Inventory turnover | 0.89 | 0.54 | 0.54 | 0.73 | 0.60 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $161,026K ÷ $180,025K
= 0.89
The inventory turnover ratio for Cactus Inc has fluctuated over the past five years. In 2023, the ratio stood at 0.89, representing an increase compared to the previous year's ratio of 0.54. This improvement suggests that the company was able to sell its inventory more efficiently during the year.
Examining further, we can see that the inventory turnover ratio in 2023 was higher than in 2019 and 2020, indicating a positive trend in inventory management. However, compared to 2021, the ratio remained the same, suggesting potential stagnation in inventory turnover efficiency.
Overall, the increasing trend in inventory turnover from 2019 to 2023 indicates that Cactus Inc has made progress in managing its inventory more effectively, which is crucial for optimizing working capital and generating higher sales revenue. It is essential for the company to continue monitoring and improving its inventory turnover to ensure efficient use of resources and maintain competitiveness in the market.
Peer comparison
Dec 31, 2023