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.
Peer comparison
Dec 31, 2023