National Fuel Gas Company (NFG)

Inventory turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cost of revenue	US$ in thousands	557,249	520,851	291,877	342,915	141,764
Inventory	US$ in thousands	81,498	73,001	87,229	85,215	77,349
Inventory turnover		6.84	7.13	3.35	4.02	1.83

September 30, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $557,249K ÷ $81,498K
= 6.84

The inventory turnover ratio for National Fuel Gas Co. has fluctuated over the past five years. In 2023 and 2022, the company maintained a consistent inventory turnover of 5.37 times, indicating a stable rate of inventory movement. In 2021, the ratio dropped to 1.97, suggesting a considerable decrease in the efficiency of inventory management compared to the previous year. However, in 2020 and 2019, the inventory turnover improved to 4.87 and 7.21 times, respectively, indicating better control over inventory levels and a higher rate of sales relative to the inventory on hand. Overall, National Fuel Gas Co. should continue to monitor and evaluate its inventory management practices to ensure optimal asset utilization and cost control.