Williams Companies Inc (WMB)

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	832,000	805,000	781,000	783,000	787,000	835,000	916,000	910,000	870,000	783,000	708,000	662,000	631,000	1,002,000	964,000	977,000	2,092,000	2,345,000	2,371,000	2,503,000
Inventory	US$ in thousands	279,000	275,000	274,000	239,000	274,000	266,000	259,000	244,000	320,000	447,000	371,000	201,000	379,000	368,000	194,000	144,000	136,000	157,000	134,000	105,000
Inventory turnover		2.98	2.93	2.85	3.28	2.87	3.14	3.54	3.73	2.72	1.75	1.91	3.29	1.66	2.72	4.97	6.78	15.38	14.94	17.69	23.84

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $832,000K ÷ $279,000K
= 2.98

Williams Companies Inc inventory turnover has been fluctuating over the years based on the provided data. The inventory turnover ratio indicates how many times a company has sold and replaced its inventory during a certain period.

Looking at the trend from March 31, 2020, to December 31, 2024, the inventory turnover ratio has been decreasing steadily, indicating that the company is taking longer to sell its inventory. A higher inventory turnover ratio is generally preferred as it suggests efficient inventory management and faster sales.

From a high of 23.84 on March 31, 2020, the ratio steadily declined to a low of 1.66 on December 31, 2021. The ratio then showed some improvement but remained relatively low compared to previous periods.

The low inventory turnover ratios in recent periods could potentially indicate overstocking or issues with inventory management, which could tie up financial resources and impact profitability. Management may need to reassess its inventory practices to improve turnover efficiency and optimize working capital.

It would be prudent for investors and stakeholders to closely monitor Williams Companies Inc's inventory turnover and investigate the reasons behind the declining trend to assess its implications for the company's overall financial health and operational efficiency.