Kinder Morgan Inc (KMI)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,259,000 | 5,886,000 | 10,232,000 | 9,097,000 | 5,145,000 |
| Inventory | US$ in thousands | 555,000 | 525,000 | 634,000 | 562,000 | 348,000 |
| Inventory turnover | 9.48 | 11.21 | 16.14 | 16.19 | 14.78 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,259,000K ÷ $555,000K
= 9.48
The inventory turnover of Kinder Morgan Inc has shown a generally improving trend over the years, increasing from 14.78 in December 2020 to 16.19 in December 2021 and remaining relatively stable at around 16 in 2022. However, there was a significant drop in inventory turnover to 11.21 in December 2023 followed by a further decline to 9.48 in December 2024.
A higher inventory turnover ratio indicates that the company is selling its inventory more frequently within a given period, which is generally favorable as it signifies efficient management of inventory levels. The decreasing trend in the inventory turnover ratio in 2023 and 2024 could suggest potential issues such as overstocking, slowing sales, or inefficiencies in inventory management that may merit further investigation.
Peer comparison
Dec 31, 2024