Cactus Inc (WHD)
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 | 701,421 | 702,158 | 646,557 | 615,307 | 591,276 | 537,968 | 531,905 | 493,922 | 445,921 | 420,607 | 385,840 | 354,801 | 317,141 | 276,489 | 232,890 | 200,818 | 236,948 | 278,021 | 339,509 | 395,177 |
| Inventory | US$ in thousands | 226,796 | 219,799 | 206,730 | 204,049 | 205,625 | 203,517 | 209,387 | 232,598 | 161,283 | 162,730 | 149,037 | 136,201 | 119,817 | 101,137 | 88,382 | 84,857 | 87,480 | 87,702 | 90,719 | 100,301 |
| Inventory turnover | 3.09 | 3.19 | 3.13 | 3.02 | 2.88 | 2.64 | 2.54 | 2.12 | 2.76 | 2.58 | 2.59 | 2.60 | 2.65 | 2.73 | 2.64 | 2.37 | 2.71 | 3.17 | 3.74 | 3.94 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $701,421K ÷ $226,796K
= 3.09
The inventory turnover of Cactus Inc has been gradually declining over the past few years, indicating that the company is taking longer to sell its inventory. The trend shows a decrease from 3.94 times in March 2020 to 3.09 times in December 2024. While the inventory turnover ratio fluctuated slightly within the range of 2.12 to 3.94 during this period, the overall downward trend suggests potential inefficiencies in managing inventory or a slowdown in sales. A lower inventory turnover ratio can tie up capital in unsold inventory and increase storage costs, affecting the company's profitability and liquidity. Monitoring and improving inventory turnover is crucial for maintaining a healthy balance between inventory levels and sales volume.
Peer comparison
Dec 31, 2024
Dec 31, 2024