National Fuel Gas Company (NFG)

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	438,815	557,249	596,050	634,020	592,123	520,850	490,860	440,267	343,606	291,878	284,262	291,535	301,900	250,643	262,877	239,581	133,503	141,764	137,414	130,803
Inventory	US$ in thousands	74,583	81,498	61,335	51,758	67,379	73,001	51,970	55,189	70,118	87,229	66,191	57,957	71,342	85,215	65,752	56,973	70,364	77,349	56,085	44,543
Inventory turnover		5.88	6.84	9.72	12.25	8.79	7.13	9.45	7.98	4.90	3.35	4.29	5.03	4.23	2.94	4.00	4.21	1.90	1.83	2.45	2.94

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $438,815K ÷ $74,583K
= 5.88

The inventory turnover ratio for National Fuel Gas Co. fluctuated over the past eight quarters, ranging from 4.33 to 9.77. This ratio indicates the company's efficiency in managing its inventory levels and converting its inventory into sales during the period. A higher turnover ratio suggests that the company is selling its inventory more quickly.

In the most recent quarter (Q1 2024), the inventory turnover decreased to 4.33 from the previous quarter's 5.37. This decline may suggest a potential buildup of inventory or slower sales during the quarter. Conversely, in Q2 2023, the company achieved its highest turnover ratio of 9.77, indicating a strong ability to convert inventory into sales rapidly during that period.

Overall, the trend in National Fuel Gas Co.'s inventory turnover shows some variability, with periods of both high and low turnover. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's inventory management efficiency and its impact on overall financial performance.