Atmos Energy Corporation (ATO)

Inventory turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Cost of revenue (ttm)	US$ in thousands	1,972,261	1,450,202	1,010,877	1,052,793	1,452,173	1,639,966	1,844,575	2,049,742	1,682,656	1,575,478	1,413,189	1,115,620	1,032,717	966,970	906,172	650,246	658,854	654,493	659,747	813,540
Inventory	US$ in thousands	169,508	157,912	144,128	220,944	245,830	211,041	183,467	323,678	357,941	223,993	96,295	220,279	178,116	99,469	50,043	99,569	111,950	84,886	68,061	115,259
Inventory turnover		11.64	9.18	7.01	4.76	5.91	7.77	10.05	6.33	4.70	7.03	14.68	5.06	5.80	9.72	18.11	6.53	5.89	7.71	9.69	7.06

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,972,261K ÷ $169,508K
= 11.64

Atmos Energy Corporation's inventory turnover has fluctuated over the past few quarters. The inventory turnover ratio indicates how efficiently the company manages its inventory by measuring how many times inventory is sold and replaced within a specific period.

At the end of September 2024, the inventory turnover ratio stood at 11.64, reflecting an increase from the previous quarter's 9.18. This increase suggests that Atmos Energy Corporation was able to sell and replace its inventory more frequently in the latest period, indicating effective inventory management.

Looking back over the past few quarters, there have been variations in the inventory turnover ratio. The ratio has ranged from a low of 4.70 at the end of September 2022 to a high of 18.11 at the end of March 2021. Generally, higher inventory turnover ratios indicate better inventory management efficiency, while lower ratios may signal inventory management challenges or excess inventory levels.

Overall, it is important for Atmos Energy Corporation to monitor its inventory turnover ratio consistently to ensure optimal inventory management practices, minimize carrying costs, and maximize profitability.