MDU Resources Group Inc (MDU)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,991,870 | 5,007,040 | 4,104,940 | 4,058,930 | 3,917,480 |
| Inventory | US$ in thousands | 87,392 | 64,248 | 335,609 | 291,167 | 278,407 |
| Inventory turnover | 34.24 | 77.93 | 12.23 | 13.94 | 14.07 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,991,870K ÷ $87,392K
= 34.24
The inventory turnover ratio for MDU Resources Group Inc has shown a significant improvement over the years, indicating a more efficient management of its inventory. The ratio has steadily increased from 1.57 in 2020 to 9.74 in 2023. This suggests that the company is selling its inventory at a faster rate, which could be attributed to better inventory management practices, improved demand forecasting, or more effective sales and marketing strategies.
A higher inventory turnover ratio is generally viewed positively as it indicates that the company is selling its products quickly and not holding excess inventory. This can lead to lower storage costs, reduced risk of obsolescence, and improved cash flow.
The sharp increase in inventory turnover from 2022 to 2023 is particularly noteworthy, as it reflects a notable improvement in the company's ability to efficiently convert inventory into sales within a shorter time period. Overall, the trend in inventory turnover for MDU Resources Group Inc suggests a positive operational performance in managing its inventory levels.
Peer comparison
Dec 31, 2023