Middlesex Water Company (MSEX)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	116,038	48,337	43,159	40,376	37,698
Inventory	US$ in thousands	6,972	6,177	5,358	5,112	5,445
Inventory turnover		16.64	7.83	8.06	7.90	6.92

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $116,038K ÷ $6,972K
= 16.64

The inventory turnover ratio for Middlesex Water Co. over the past five years has consistently been at 0.00. This indicates that the company has not been effectively managing its inventory levels relative to its cost of goods sold. A low inventory turnover ratio may imply excess inventory levels or slow-moving inventory, which can tie up capital and lead to potential obsolescence or carrying costs. It is important for the company to assess and improve its inventory management practices to enhance efficiency and optimize working capital utilization.