Western Energy Services (TSX:WRG) Inventory Turnover : 2.93 (As of Mar. 2024)

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What is Western Energy Services 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. Western Energy Services's Cost of Goods Sold for the three months ended in Mar. 2024 was C$10.5 Mil. Western Energy Services's Average Total Inventories for the quarter that ended in Mar. 2024 was C$3.6 Mil. Western Energy Services's Inventory Turnover for the quarter that ended in Mar. 2024 was 2.93.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Western Energy Services's Days Inventory for the three months ended in Mar. 2024 was 31.13.

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. Western Energy Services's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.06.

Western Energy Services Inventory Turnover Historical Data

The historical data trend for Western Energy Services'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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Western Energy Services Inventory Turnover Chart

Western Energy Services Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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20.49

15.63

12.61

10.47

11.03

Western Energy Services 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															2.49	2.46	2.49	2.94	2.93

Western Energy Services Inventory Turnover Calculation

Western Energy Services'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 )
=	42.164	/ (	(4.066	+	3.579)	/	2 )
=	42.164	/	3.8225
=	11.03

Western Energy Services'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 )
=	10.523	/ (	(3.579	+	3.601)	/	2 )
=	10.523	/	3.59
=	2.93

Western Energy Services (TSX:WRG) 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.

Western Energy Services'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
	=	3.59	/	10.523	*	365 / 4
	=	31.13

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.

Western Energy Services'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 )
	=	3.59	/	61.982
	=	0.06

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.

Western Energy Services Inventory Turnover Related Terms

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Western Energy Services (TSX:WRG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Western Energy Services Corp (TSX:WRG) » Definitions » Inventory Turnover

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WEEEF:USA

Address

215 - 9th Avenue SW, Suite 1700, Calgary, AB, CAN, T2P 1K3

Website

https://www.wesc.ca

Western Energy Services Corp operates as an oilfield service industry in Canada and the United States of America. The company functions its drilling services through two segments namely, Contract drilling and Production services. Its contract drilling segment is involved in drilling rigs with ancillary equipment as well as provides such services to crude oil and natural gas exploration and production companies. The production service segment includes well servicing rigs and related equipment, and oilfield rental equipment. It generates revenue mainly through its Contract drilling operation segment.

Executives

Sime Armoyan	10% Security Holder
Tomer Cohen	Director

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