National Fuel Gas Company (NFG)

Inventory turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	786,578	557,249	520,851	291,877	342,915
Inventory	US$ in thousands	82,725	81,498	73,001	87,229	85,215
Inventory turnover		9.51	6.84	7.13	3.35	4.02

September 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $786,578K ÷ $82,725K
= 9.51

National Fuel Gas Company's inventory turnover has shown a fluctuating pattern over the past five years. In 2024, the inventory turnover ratio improved significantly to 9.51 compared to the previous years of 6.84 in 2023 and 7.13 in 2022. This indicates that the company is selling its inventory more efficiently in 2024.

The increase in inventory turnover from 2021 (3.35) to 2024 reflects a positive trend in managing and converting inventory into sales. This improvement suggests that National Fuel Gas Company has been able to optimize its inventory management processes, reduce excess inventory levels, and enhance sales performance.

However, it's important to note that the inventory turnover ratio has been volatile in the past years, with a notable increase in 2024. It would be advisable for the company to continue monitoring and optimizing its inventory levels and sales strategies to sustain and potentially further improve its inventory turnover efficiency in the future.