American Water Works (AWK)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	52,000	41,000	38,000	44,000	42,000
Inventory	US$ in thousands	112,000	98,000	57,000	47,000	44,000
Inventory turnover		0.46	0.42	0.67	0.94	0.95

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $52,000K ÷ $112,000K
= 0.46

The inventory turnover ratio for American Water Works Co. Inc. has been consistently reported as 0.00 for the past five years, indicating that the company has not been effectively managing its inventory levels relative to its cost of goods sold. A low or zero inventory turnover ratio may suggest that the company is facing challenges such as excessive inventory levels, slow-moving inventory, or inefficient inventory management processes. It is important for the company to closely monitor and improve its inventory turnover ratio to optimize its working capital and operational efficiency. A thorough review of inventory management practices and potential strategies for enhancing inventory turnover should be considered to drive better performance in this area.