Black Hills Corporation (BKH)

Inventory turnover

		Dec 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	341,400	273,512	204,281	137,122	71,600	71,756	71,417	71,915	71,233	68,293	67,387	65,992	64,318	-267,402	-197,377	-198,140	-199,044	131,021	58,758	57,519
Inventory	US$ in thousands	153,900	155,400	134,800	130,600	160,900	168,079	136,534	129,960	207,400	223,162	152,864	108,232	150,979	145,743	114,089	102,603	117,400	126,358	105,987	92,894
Inventory turnover		2.22	1.76	1.52	1.05	0.44	0.43	0.52	0.55	0.34	0.31	0.44	0.61	0.43	-1.83	-1.73	-1.93	-1.70	1.04	0.55	0.62

December 31, 2024 calculation

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

The inventory turnover ratio of Black Hills Corporation shows the number of times the company's inventory is sold and replaced during a specific period. A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which is generally viewed positively.

From the data provided, we can observe fluctuations in Black Hills Corporation's inventory turnover over the reported periods. The inventory turnover ratio was negative for several quarters in 2020 and 2021, indicating that the company was not efficiently managing its inventory during those periods. However, starting from March 2022, the inventory turnover ratio began to improve and showed a positive trend.

The inventory turnover ratio ranged from 0.31 to 2.22 over the data points provided, with noticeable variability. The highest inventory turnover ratio recorded was 2.22 at the end of December 2024, suggesting that the company was able to sell and replenish its inventory more than twice during that quarter.

Overall, the trend in Black Hills Corporation's inventory turnover ratio seems to have improved in recent periods, reflecting better inventory management practices. However, it would be beneficial for the company to maintain a consistently high inventory turnover ratio to optimize its inventory control and enhance operational efficiency.