Cactus Inc (WHD)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 158,040 | 158,033 | 128,057 | 114,478 | 91,149 | 75,246 | 64,536 | 60,715 | 57,359 | 53,720 | 51,523 | 47,758 | 45,924 | 51,011 | 49,047 | 55,978 | 61,575 | 58,445 | 54,386 | 50,122 |
| Inventory | US$ in thousands | 204,049 | 180,025 | 203,517 | 209,387 | 232,598 | 140,783 | 162,730 | 149,037 | 136,201 | 101,817 | 101,137 | 88,382 | 84,857 | 72,880 | 87,702 | 90,719 | 100,301 | 103,599 | 111,590 | 110,060 |
| Inventory turnover | 0.77 | 0.88 | 0.63 | 0.55 | 0.39 | 0.53 | 0.40 | 0.41 | 0.42 | 0.53 | 0.51 | 0.54 | 0.54 | 0.70 | 0.56 | 0.62 | 0.61 | 0.56 | 0.49 | 0.46 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $158,040K ÷ $204,049K
= 0.77
Over the past few quarters, Cactus Inc's inventory turnover ratio has shown fluctuations. The inventory turnover ratio measures the number of times a company's inventory is sold and replaced over a specific period. A higher ratio indicates efficient inventory management, while a lower ratio suggests excess inventory or slow sales.
In the most recent quarter, the inventory turnover ratio was 0.77, indicating that inventory was turned over approximately 0.77 times during the quarter. This represents a slight decrease from the previous quarter's ratio of 0.88. The decrease in the ratio could suggest slower sales relative to the amount of inventory held, potentially leading to excess inventory and lower profitability.
It is important for Cactus Inc to closely monitor its inventory turnover ratio to ensure optimal inventory management. The company may need to adjust its inventory levels, sales strategies, or production processes to improve efficiency and reduce carrying costs associated with excess inventory. Additionally, a lower inventory turnover ratio could also impact the company's working capital management and cash flow.
Peer comparison
Mar 31, 2024
Mar 31, 2024