Middlesex Water Company (MSEX)

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	35,328	114,825	114,842	115,987	116,038	50,752	50,199	49,245	48,339	44,975	43,899	43,401	43,156	40,448	40,606	40,569	40,377	38,355	38,038	37,829
Inventory	US$ in thousands	6,719	6,550	6,477	7,072	6,972	6,405	6,426	6,559	6,177	5,792	5,707	5,369	5,358	5,156	4,661	5,193	5,112	4,762	5,274	5,276
Inventory turnover		5.26	17.53	17.73	16.40	16.64	7.92	7.81	7.51	7.83	7.77	7.69	8.08	8.05	7.84	8.71	7.81	7.90	8.05	7.21	7.17

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $35,328K ÷ $6,719K
= 5.26

The inventory turnover for Middlesex Water Company has shown some fluctuations over the past few years. The inventory turnover ratio is a measure of how efficiently a company manages its inventory in generating sales. A higher turnover ratio indicates that the company is selling its inventory quickly.

Looking at the data provided, we can see that the inventory turnover ratio for Middlesex Water Company ranged from 5.26 to 17.73 over the last few quarters. The average turnover ratio during this period is approximately 9.21, which indicates that, on average, the company is able to sell and replace its inventory about 9.21 times a year.

There are a couple of notable peaks and dips in the inventory turnover ratio, particularly in December 2023 and June 2024 where the ratio spiked to 16.64 and 17.73 respectively. These spikes may indicate either a significant increase in sales relative to inventory levels or a decrease in inventory levels. Conversely, the dip in December 2024 to 5.26 may suggest a slowdown in sales relative to inventory levels or excess inventory on hand.

Overall, Middlesex Water Company seems to be managing its inventory efficiently, with turnover ratios generally staying within a reasonable range. Further analysis, including comparing these ratios with industry benchmarks and trends over time, could provide additional insights into the company's inventory management practices.