DT Midstream Inc (DTM)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	244,000	427,000	267,000	231,000	327,000
Inventory	US$ in thousands	—	—	22,000	25,000	—
Inventory turnover		—	—	12.14	9.24	—

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $244,000K ÷ $—K
= —

The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times a company's inventory is sold and replaced over a period of time. In the case of DT Midstream Inc, the inventory turnover ratio shows a fluctuating trend over the years.

As of December 31, 2020, the inventory turnover ratio was not provided (indicated as "—"), which suggests that there may have been challenges or changes in inventory management during that period.

In the following years, the inventory turnover ratio improved significantly. By December 31, 2021, the ratio stood at 9.24, indicating that the company sold and replaced its inventory approximately 9.24 times during that year. This increase suggests a more efficient management of inventory compared to the previous year.

The trend continued to improve as of December 31, 2022, with the inventory turnover ratio increasing to 12.14. This indicates that the company was able to sell and replace its inventory even more frequently, demonstrating further efficiency in its inventory management practices.

Unfortunately, data for December 31, 2023, and December 31, 2024, was not provided (indicated as "—"), making it challenging to assess the company's inventory turnover for those years.

Overall, the increasing trend in the inventory turnover ratio from 2020 to 2022 reflects an improvement in DT Midstream Inc's ability to efficiently manage its inventory and convert it into sales. It suggests that the company may be effectively controlling its inventory levels, reducing holding costs, and optimizing its operations in the process.