Precision Drilling (TSX:PD) Inventory Turnover : 2.19 (As of Mar. 2024)

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What is Precision Drilling 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. Precision Drilling's Cost of Goods Sold for the three months ended in Mar. 2024 was C$78 Mil. Precision Drilling's Average Total Inventories for the quarter that ended in Mar. 2024 was C$36 Mil. Precision Drilling's Inventory Turnover for the quarter that ended in Mar. 2024 was 2.19.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Precision Drilling's Days Inventory for the three months ended in Mar. 2024 was 41.59.

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. Precision Drilling's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.07.

Precision Drilling Inventory Turnover Historical Data

The historical data trend for Precision Drilling'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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Precision Drilling Inventory Turnover Chart

Precision Drilling Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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10.14

10.91

11.36

9.53

8.45

Precision Drilling Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															2.00	2.02	10.07	2.24	2.19

Precision Drilling Inventory Turnover Calculation

Precision Drilling'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 )
=	297.557	/ (	(35.158	+	35.272)	/	2 )
=	297.557	/	35.215
=	8.45

Precision Drilling's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	78.213	/ (	(35.272	+	36.018)	/	2 )
=	78.213	/	35.645
=	2.19

Precision Drilling (TSX:PD) 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.

Precision Drilling's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	35.645	/	78.213	*	365 / 4
	=	41.59

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.

Precision Drilling's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	35.645	/	527.788
	=	0.07

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.

Precision Drilling Inventory Turnover Related Terms

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Precision Drilling (TSX:PD) Business Description

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GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Precision Drilling Corp (TSX:PD) » Definitions » Inventory Turnover

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PDS:USA

Address

150 6th Avenue SW, Suite 4200, Calgary, AB, CAN, T2P3Y7

Website

https://www.precisiondrilling.com

Precision Drilling Corpd is a provider of contract drilling and completion and production services to oil and natural gas exploration and production companies in Canada, the United States and certain international locations. Contract Drilling Services include drilling rigs, procurement and distribution of oilfield supplies, and the manufacture, sale and repair of drilling equipment. Completion and Production Services include service rigs, oilfield equipment rental, and camp and catering services.