Middlesex Water Company (MSEX)

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	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	37,699	36,150	36,256	36,298
Inventory	US$ in thousands	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	5,445	5,159	5,375	5,479
Inventory turnover		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	6.92	7.01	6.75	6.62

December 31, 2023 calculation

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

Based on the data provided for Middlesex Water Co., the inventory turnover for each quarter from the fourth quarter of 2022 to the fourth quarter of 2023 has been consistently reported as 0.00. A ratio of 0.00 indicates that the company is not efficiently managing its inventory turnover during this period. It suggests that either the company is carrying too much inventory, which is not being sold or utilized effectively, or the company is experiencing challenges in selling its existing inventory.

An inventory turnover ratio of 0.00 for multiple consecutive quarters can raise concerns regarding the company's liquidity, profitability, and operational efficiency. It may point towards potential issues such as overstocking, slow-moving inventory, inadequate sales, or inefficient inventory management practices. Further analysis and investigation into the reasons for this low or zero turnover ratio are recommended to identify and address any underlying problems in the company's inventory control and operations.