Williams Companies Inc (WMB)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 836,000 | 792,000 | 882,000 | 631,000 | 2,092,000 |
| Inventory | US$ in thousands | 279,000 | 274,000 | 320,000 | 379,000 | 136,000 |
| Inventory turnover | 3.00 | 2.89 | 2.76 | 1.66 | 15.38 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $836,000K ÷ $279,000K
= 3.00
Inventory turnover is a crucial financial ratio that assesses how efficiently a company manages its inventory. For Williams Companies Inc, the inventory turnover has shown fluctuations over the years. In December 31, 2020, the inventory turnover was at a high of 15.38, indicating that the company turned over its inventory approximately 15.38 times during that year. However, this ratio saw a significant decline to 1.66 in December 31, 2021, suggesting a slowdown in inventory turnover efficiency.
Subsequently, there were improvements in the inventory turnover ratio in the following years. By December 31, 2022, the ratio increased to 2.76, and by December 31, 2023, it further improved to 2.89. This indicates that the company was managing its inventory more efficiently in those years compared to 2021.
In the most recent data available, by December 31, 2024, the inventory turnover ratio reached 3.00, showing a continued uptrend in inventory management efficiency. This improvement suggests that Williams Companies Inc is enhancing its ability to convert inventory into sales within a shorter time frame, which can positively impact profitability and cash flow.
Overall, while there have been fluctuations in Williams Companies Inc's inventory turnover ratio, the recent upward trend indicates a positive trajectory in the company's inventory management efficiency.
Peer comparison
Dec 31, 2024