MGE Energy Inc (MGEE)

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	25,769	24,123	23,023	23,023	22,923	21,342	20,642	20,242	19,542	18,035	18,935	19,235	19,535	20,360	20,160	19,760	18,460	18,403	18,728	19,228
Inventory	US$ in thousands	67,645	69,414	70,604	69,676	72,648	72,416	71,882	69,434	74,275	75,396	60,736	42,862	51,960	50,527	46,061	38,685	47,265	49,423	46,082	40,724
Inventory turnover		0.38	0.35	0.33	0.33	0.32	0.29	0.29	0.29	0.26	0.24	0.31	0.45	0.38	0.40	0.44	0.51	0.39	0.37	0.41	0.47

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $25,769K ÷ $67,645K
= 0.38

The inventory turnover of MGE Energy Inc has experienced fluctuations over the past several periods. It decreased from 0.47 on March 31, 2020, to a low of 0.24 on September 30, 2022, indicating a slower rate of inventory turnover during this period. Subsequently, there was a partial recovery with a slight increase in inventory turnover to 0.38 on December 31, 2024. The average inventory turnover during the period under review was approximately 0.35.

A low inventory turnover ratio may signify overstocking or slow-moving inventory, while improvements in the ratio could indicate more efficient inventory management. Overall, MGE Energy Inc may benefit from closely monitoring its inventory turnover and implementing strategies to optimize inventory levels for improved operational efficiency.