Black Hills Corporation (BKH)

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	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	56,920	57,858	56,777	57,611
Inventory	US$ in thousands	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	117,172	123,002	102,830	87,676
Inventory turnover		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	0.49	0.47	0.55	0.66

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $71,600K ÷ $160,900K
= 0.44

Black Hills Corporation's inventory turnover has shown variability over the past eight quarters. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times it sells and replaces its inventory during a specific period.

In Q4 2023, Black Hills Corporation had an inventory turnover of 6.11, indicating that it turned over its inventory approximately 6.11 times during that quarter. This rate decreased from the previous quarter (Q3 2023), where the turnover was 7.06. The decrease in inventory turnover could suggest that the company took longer to sell and replace its inventory in Q4 2023 compared to the previous quarter.

Looking back further, in Q1 2023, Black Hills Corporation had an inventory turnover of 10.16, indicating the highest efficiency in managing inventory over the analyzed period. This was followed by Q2 2023 and Q3 2023, with inventory turnovers of 9.18 and 7.06, respectively.

Comparing to the previous year's quarters, the inventory turnover has shown an overall increasing trend from Q1 2022 to Q4 2023. This suggests that Black Hills Corporation has been improving its inventory management efficiency over time. However, it is important to note that a very high inventory turnover might indicate a shortage of inventory, which could potentially lead to lost sales.

Analyzing the trend in inventory turnover can provide insights into the company's inventory management practices and its ability to meet customer demand while minimizing holding costs.