Chesapeake Utilities Corporation (CPK)
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 | 121,789 | 105,763 | 104,778 | 105,039 | 104,073 | 95,381 | 95,076 | 94,888 | 94,200 | 90,050 | 89,493 | 88,692 | 103,433 | 59,775 | 74,837 | 77,432 | 64,039 | 55,402 | 41,791 | 42,031 |
| Inventory | US$ in thousands | 33,920 | 29,657 | 27,573 | 27,253 | 32,625 | 28,068 | 24,461 | 20,650 | 24,680 | 18,296 | 14,985 | 12,530 | 13,900 | 12,653 | 11,291 | 11,510 | 15,432 | 12,565 | 17,064 | 16,314 |
| Inventory turnover | 3.59 | 3.57 | 3.80 | 3.85 | 3.19 | 3.40 | 3.89 | 4.60 | 3.82 | 4.92 | 5.97 | 7.08 | 7.44 | 4.72 | 6.63 | 6.73 | 4.15 | 4.41 | 2.45 | 2.58 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $121,789K ÷ $33,920K
= 3.59
The inventory turnover ratio reflects how efficiently Chesapeake Utilities Corp manages its inventory by measuring how many times the company sells and replaces its inventory over a specific period.
Based on the data provided:
- The inventory turnover ratio has fluctuated over the past eight quarters, ranging from a low of 6.38 in Q4 2023 to a high of 10.16 in Q1 2022.
- In general, a higher inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently, while a lower ratio may suggest slower sales or potential overstocking.
- Chesapeake Utilities Corp's inventory turnover has generally been above 7 in recent quarters, indicating a reasonably efficient management of inventory levels.
- The increasing trend in inventory turnover from Q1 2022 to Q1 2023 suggests an improvement in managing inventory levels.
In conclusion, Chesapeake Utilities Corp has shown a consistent ability to efficiently manage its inventory levels, with a generally healthy inventory turnover ratio over the past eight quarters. It will be important for the company to continue monitoring and optimizing its inventory turnover to support its operational efficiency and financial performance.
Peer comparison
Dec 31, 2023
Dec 31, 2023