Archrock (Archrock) Inventory Turnover : 1.83 (As of Dec. 2023)

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What is Archrock Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Archrock's Cost of Goods Sold for the three months ended in Dec. 2023 was $155.0 Mil. Archrock's Average Total Inventories for the quarter that ended in Dec. 2023 was $84.9 Mil. Archrock's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.83.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Archrock's Days Inventory for the three months ended in Dec. 2023 was 49.96.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Archrock's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.33.

Archrock Inventory Turnover Historical Data

The historical data trend for Archrock's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Archrock Inventory Turnover Chart

Archrock Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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8.55

8.26

7.88

7.41

7.40

Archrock Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															1.76	1.76	1.67	1.70	1.83

Archrock Inventory Turnover Calculation

Archrock's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	615.26	/ (	(84.622	+	81.761)	/	2 )
=	615.26	/	83.1915
=	7.40

Archrock's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	154.987	/ (	(87.942	+	81.761)	/	2 )
=	154.987	/	84.8515
=	1.83

Archrock (NYSE:AROC) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Archrock's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	84.8515	/	154.987	*	365 / 4
	=	49.96

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Archrock's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	84.8515	/	259.593
	=	0.33

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Archrock Inventory Turnover Related Terms

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Archrock (Archrock) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Archrock Inc (NYSE:AROC) » Definitions » Inventory Turnover

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Traded in Other Exchanges

54E:Germany 54E:Germany

Address

9807 Katy Freeway, Suite 100, Houston, TX, USA, 77024

Website

https://www.archrock.com

Archrock Inc is an energy infrastructure company with focus on midstream natural gas compression and a commitment to helping customers produce, compress and transport natural gas. It has two business segments, Contract Operations, and Aftermarket Services. Under the umbrella of contract operations services, the company provides operations to meet customers' natural gas compression needs. Services include designing, owning, installing, operating, and maintaining equipment. Aftermarket Services business provides a full range of services to support the compression needs of customers that own compression equipment, including operations, maintenance, overhaul and reconfiguration services and sales of parts and components. It generates maximum revenue from the Contract Operations segment.

Executives

Donna A Henderson	officer: VP, Chief Accounting Officer	1700 PACIFIC AVENUE, SUITE 2900, DALLAS TX 75201
Jdh Capital Holdings, L.p.	10 percent owner	1111 TRAVIS STREET, SUITE 2300, HOUSTON TX 77002
Eric W Thode	officer: Vice President	9807 KATY FREEWAY, SUITE 100, HOUSTON TX 77024
Hildebrand Enterprises Co	10 percent owner	1111 TRAVIS STREET, SUITE 2300, HOUSTON TX 77002
Hildebrand Enterprises, Lp	10 percent owner	1111 TRAVIS STREET, SUITE 2300, HOUSTON TX 77002
Jdh Capital Co	10 percent owner	C/O HILCORP ENERGY COMPANY, 1111 TRAVIS, HOUSTON TX 77002
Jeffery D Hildebrand	10 percent owner	1111 TRAVIS STREET, SUITE 2300, HOUSTON TX 77002
Melinda B Hildebrand	10 percent owner	1111 TRAVIS STREET, SUITE 2300, HOUSTON TX 77002
Leonard Wayne Mallett	director	P.O. BOX 2521, HOUSTON TX 77252-2521
Jason C Rebrook	director	C/O JDH CAPITAL COMPANY, 1111 TRAVIS STREET, HOUSTON TX 77002
Doug S Aron	officer: Sr Vice President and CFO	10000 MEMORIAL DRIVE, SUITE 600, HOUSTON TX 77024-3411
Gordon T Hall	director	3300 NORTH SAM HOUSTON PARKWAY EAST, HOUSTON TX 77032-3411
D Bradley Childers	officer: Sr Vice President	DC/O UNIVERSAL COPRESSION HOLDINGS INC, 4440 BRITTMOORE ROAD, HOUSTON TX 77041
Jason Ingersoll	officer: Vice President	16666 NORTHCHASE DRIVE, HOUSTON TX 77060
Sean K Clawges	officer: Vice President	9807 KATY FREEWAY, SUITE 100, HOUSTON TX 77024