Kinder Morgan Inc (KMI)

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	5,259,000	5,463,000	5,818,000	5,799,000	5,886,000	6,556,000	7,868,000	9,563,000	10,232,000	11,867,000	10,721,000	8,982,000	9,097,000	6,319,000	5,394,000	4,894,000	3,545,000	3,366,000	3,495,000	3,843,000
Inventory	US$ in thousands	555,000	526,000	537,000	548,000	525,000	565,000	569,000	589,000	634,000	715,000	690,000	591,000	562,000	457,000	396,000	389,000	348,000	317,000	336,000	307,000
Inventory turnover		9.48	10.39	10.83	10.58	11.21	11.60	13.83	16.24	16.14	16.60	15.54	15.20	16.19	13.83	13.62	12.58	10.19	10.62	10.40	12.52

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,259,000K ÷ $555,000K
= 9.48

The inventory turnover ratio for Kinder Morgan Inc has fluctuated over the past few years. It started at 12.52 on March 31, 2020, showing that the company sold and replaced its inventory 12.52 times during that period. The ratio decreased slightly to 10.40 on June 30, 2020, but then increased to 13.83 by September 30, 2021. This indicates an improvement in the efficiency of managing inventory.

By December 31, 2021, the inventory turnover ratio further increased to 16.19, suggesting that Kinder Morgan was selling and replenishing its inventory at a faster rate. The ratio dipped slightly in the following periods but generally held above 10, indicating consistent inventory management.

As of December 31, 2024, the inventory turnover ratio stood at 9.48, which is relatively lower compared to earlier periods. This may signal a potential slow down in inventory turnover efficiency, which could lead to excess inventory or potential obsolescence issues if not addressed.

Overall, analyzing the trend in Kinder Morgan's inventory turnover ratio provides insights into how effectively the company is managing its inventory levels and sales. It is important for the company to continually monitor and optimize its inventory turnover to ensure efficient operations and financial performance.