Atmos Energy Corporation (ATO)

Inventory turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	1,901,530	1,452,170	1,682,660	1,032,720	658,854
Inventory	US$ in thousands	169,508	245,830	357,941	178,116	111,950
Inventory turnover		11.22	5.91	4.70	5.80	5.89

September 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,901,530K ÷ $169,508K
= 11.22

The inventory turnover of Atmos Energy Corporation has exhibited a positive trend over the past five fiscal years, with values of 5.89 in 2020, 5.80 in 2021, 4.70 in 2022, 5.91 in 2023, and 11.22 in 2024. This suggests that the company has been more efficient in managing its inventory levels and converting them into sales during the most recent fiscal year. A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which can lead to lower holding costs and potentially higher profitability. The significant increase in inventory turnover from 2023 to 2024 reflects improved inventory management practices at Atmos Energy Corporation. It is essential for the company to sustain this positive trend in inventory turnover to enhance its operational efficiency and overall financial performance.