MDU Resources Group Inc (MDU)

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	3,300,705	3,846,935	4,655,905	5,203,890	5,007,047	4,774,031	4,439,981	4,200,881	4,104,943	4,094,200	4,096,220	4,049,090	4,058,931	4,050,309	4,047,309	4,038,969	3,919,483	3,795,296	3,579,067	3,436,661
Inventory	US$ in thousands	87,392	80,235	60,154	425,834	64,248	89,814	50,977	380,316	335,609	312,285	316,328	316,737	291,167	286,223	302,837	305,958	278,407	286,057	325,944	311,535
Inventory turnover		37.77	47.95	77.40	12.22	77.93	53.15	87.10	11.05	12.23	13.11	12.95	12.78	13.94	14.15	13.36	13.20	14.08	13.27	10.98	11.03

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,300,705K ÷ $87,392K
= 37.77

MDU Resources Group Inc's inventory turnover has shown significant fluctuations over the past eight quarters. In Q2 2023, the company achieved a high inventory turnover ratio of 15.80, indicating that it sold its inventory almost 16 times during that quarter. This suggests efficient management of inventory and a quicker turnaround of goods, which is generally seen as a positive sign.

On the other hand, in Q1 2023, the inventory turnover ratio dropped to 2.23, the lowest among the data points provided. This could indicate potential issues such as overstocking, slow-moving inventory, or difficulties in selling goods. It is important to investigate further to understand the reasons behind this significant drop and address any underlying problems.

Overall, the trend in MDU Resources Group Inc's inventory turnover ratios shows some variability, with periods of improvement followed by declines. It would be beneficial for the company to maintain a consistent and efficient inventory turnover to ensure optimal use of resources and maximize profitability.