Middlesex Water Company (MSEX)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	57,412	116,038	48,337	43,159	40,376
Inventory	US$ in thousands	6,719	6,972	6,177	5,358	5,112
Inventory turnover		8.54	16.64	7.83	8.06	7.90

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $57,412K ÷ $6,719K
= 8.54

Middlesex Water Company's inventory turnover has shown fluctuation over the past five years. In December 2020, the inventory turnover was 7.90 times, which increased slightly to 8.06 times in December 2021 before decreasing to 7.83 times in December 2022. However, there was a significant improvement in efficiency in December 2023 with an inventory turnover of 16.64 times, indicating a rapid turnover of inventory during that period. The turnover then decreased to 8.54 times in December 2024.

Overall, Middlesex Water Company's inventory turnover ratio has shown variability, with a notable spike in 2023. A high inventory turnover ratio generally signifies effective inventory management and swift sales of goods, while a lower ratio may indicate excess inventory or potential inefficiencies in managing stock levels.