American Water Works (AWK)

Inventory turnover

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	52,000	40,000	41,000	41,000	41,000	47,000	480,000	908,000	1,324,000	1,330,000	1,313,000	1,273,000	1,237,000	1,235,000	1,211,000	1,192,000	1,174,000	1,208,000	870,000	846,000
Inventory	US$ in thousands	112,000	111,000	109,000	103,000	98,000	93,000	85,000	71,000	57,000	53,000	52,000	52,000	47,000	49,000	51,000	50,000	44,000	46,000	48,000	44,000
Inventory turnover		0.46	0.36	0.38	0.40	0.42	0.51	5.65	12.79	23.23	25.09	25.25	24.48	26.32	25.20	23.75	23.84	26.68	26.26	18.12	19.23

December 31, 2023 calculation

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

Based on the inventory turnover data provided for American Water Works Co. Inc., it appears that the company had an inventory turnover of 0.00 for all quarters spanning from Q1 2022 to Q4 2023. A consistently low or zero inventory turnover ratio may indicate inefficiencies in managing inventory levels or potential issues with demand forecasting and inventory controls.

Since inventory turnover is calculated by dividing the cost of goods sold by the average inventory level, a ratio of 0.00 suggests that the company may not be effectively selling or turning over its inventory within a specified period. This could potentially lead to increased carrying costs, excess inventory levels, and potential obsolescence risks.

It is essential for companies to monitor and improve their inventory turnover ratios to ensure optimal utilization of resources and maintain healthy liquidity levels. American Water Works Co. Inc. may benefit from reassessing its inventory management strategies, streamlining operations, and optimizing inventory levels to enhance overall efficiency and profitability.