Atmos Energy Corporation (ATO)

Inventory turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cost of revenue	US$ in thousands	1,452,170	1,682,660	1,032,720	658,854	858,837
Inventory	US$ in thousands	245,830	357,941	178,116	111,950	130,138
Inventory turnover		5.91	4.70	5.80	5.89	6.60

September 30, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,452,170K ÷ $245,830K
= 5.91

The inventory turnover ratio for Atmos Energy Corp. has exhibited some fluctuations over the past five years, averaging 5.35. This ratio indicates the efficiency with which the company manages its inventory, and a higher ratio is generally preferred as it suggests that the company is selling its inventory more quickly.

The decrease in inventory turnover from 2019 to 2022 may indicate a slower movement of inventory relative to sales during those years. However, it is positive to note that the ratio improved in 2023, suggesting a more efficient management of inventory relative to sales.

Overall, Atmos Energy Corp. has maintained a relatively healthy inventory turnover ratio, indicating effective inventory management and the ability to minimize excess inventory holding costs. However, it may be beneficial for the company to continue monitoring and potentially improving this ratio to enhance overall operational efficiency.