Black Hills Corporation (BKH)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	341,400	71,600	71,233	64,318	60,464
Inventory	US$ in thousands	153,900	160,900	207,400	150,979	117,400
Inventory turnover		2.22	0.44	0.34	0.43	0.52

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $341,400K ÷ $153,900K
= 2.22

Black Hills Corporation's inventory turnover ratio has shown fluctuations over the past five years. The ratio declined from 0.52 in December 2020 to 0.43 in December 2021, indicating a decrease in the speed at which the company was able to sell its inventory. However, in December 2022, the ratio further decreased to 0.34, suggesting a longer time taken to turn over inventory.

In December 2023, there was a slight improvement as the inventory turnover ratio increased to 0.44, although it remained relatively low compared to the initial ratio in 2020. The most significant change occurred in December 2024 when the ratio surged to 2.22, indicating a substantial improvement in inventory management efficiency.

Overall, the varying inventory turnover ratios over the five-year period suggest fluctuations in inventory management effectiveness within Black Hills Corporation. Further analysis would be beneficial to determine the underlying reasons for these fluctuations and to assess the company's inventory management strategies in more detail.