Nine Energy Service (Nine Energy Service) Inventory-to-Revenue : 0.39 (As of Dec. 2023)

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What is Nine Energy Service Inventory-to-Revenue?

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. Nine Energy Service's Average Total Inventories for the quarter that ended in Dec. 2023 was $56.6 Mil. Nine Energy Service's Revenue for the three months ended in Dec. 2023 was $144.1 Mil. Nine Energy Service's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.39.

Nine Energy Service's Inventory-to-Revenue for the quarter that ended in Dec. 2023 declined from Sep. 2023 (0.43) to Sep. 2023 (0.39)

A decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Nine Energy Service's Days Inventory for the three months ended in Dec. 2023 was 40.22.

Inventory Turnover measures how fast the company turns over its inventory within a year. Nine Energy Service's Inventory Turnover for the quarter that ended in Dec. 2023 was 2.27.

Nine Energy Service Inventory-to-Revenue Historical Data

The historical data trend for Nine Energy Service's Inventory-to-Revenue 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.

* Premium members only.

Nine Energy Service Inventory-to-Revenue Chart

Nine Energy Service Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory-to-Revenue

Get a 7-Day Free Trial

0.09

0.16

0.12

0.09

0.10

Nine Energy Service Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory-to-Revenue	Get a 7-Day Free Trial															0.35	0.40	0.40	0.43	0.39

Competitive Comparison of Nine Energy Service's Inventory-to-Revenue

For the Oil & Gas Equipment & Services subindustry, Nine Energy Service's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Nine Energy Service's Inventory-to-Revenue Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Nine Energy Service's Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where Nine Energy Service's Inventory-to-Revenue falls into.

Nine Energy Service Inventory-to-Revenue Calculation

Nine Energy Service's Inventory-to-Revenue for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (A: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )	/	Revenue (A: Dec. 2023 )
=	( (62.045	+	54.486)	/	2 )	/	609.526
=	58.2655					/	609.526
=	0.10

Nine Energy Service's Inventory-to-Revenue for the quarter that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (Q: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Revenue (Q: Dec. 2023 )
=	( (58.663	+	54.486)	/	2 )	/	144.073
=	56.5745					/	144.073
=	0.39

Nine Energy Service (NYSE:NINE) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

More Related Terms:

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

Nine Energy Service'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
	=	56.5745	/	128.346	*	365 / 4
	=	40.22

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

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

Inventory Turnover	=	Cost of Goods Sold (Q: Dec. 2023 )	/	Average Total Inventories (Q: Dec. 2023 )
	=	128.346	/	56.5745
	=	2.27

Nine Energy Service Inventory-to-Revenue Related Terms

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Nine Energy Service (Nine Energy Service) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Nine Energy Service Inc (NYSE:NINE) » Definitions » Inventory-to-Revenue

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Traded in Other Exchanges

NEJ:Germany

Address

2001 Kirby Drive, Suite 200, Houston, TX, USA, 77019

Website

https://www.nineenergyservice.com

Nine Energy Service Inc is a North American onshore completion and production services provider. It targets unconventional oil and gas resource development. It operates in one segment, Completion Solutions. The Completion Solutions segment offers cementing services; completion tools, including liner hangers and accessories, frac sleeves, fully composite frac plugs, and specialty open hole float equipment and centralizers and other services. It operates in the US, Canada, and other countries where most of the revenue is generated from the United States.

Executives

David Crombie	officer: See Remarks	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Theodore R. Moore	officer: See Remarks	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Ann G Fox	director, officer: See Remarks	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Guy Sirkes	officer: SVP and CFO	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
S. Brett Luz	officer: Chief Accounting Officer	4400 POST OAK PARKWAY, SUITE 1000, HOUSTON TX 77027
Darryl Keith Willis	director	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Warren Lynn Frazier	10 percent owner	5655 BEAR LANE, SUITE 100, CORPUS CHRISTI TX 78405
Clinton Roeder	officer: See Remarks	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Scf Gp Llc	10 percent owner	600 TRAVIS STREET, SUITE 6600, HOUSTON TX 77002
Richard S. Woolston	officer: Chief Accounting Officer	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Edward Bruce Morgan	officer: See Remarks	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Gary L Thomas	director	P O BOX 4362, HOUSTON TX 772104362
Scf-vii(a), G.p., Limited Partnership	10 percent owner	600 TRAVIS, SUITE 6600, HOUSTON TX 77002
Scf-vii(a), L.p.	10 percent owner	600 TRAVIS ST., STE. 6600, HOUSTON TX 77002
Curtis F. Harrell	director	2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019