National Fuel Gas Company (NFG)

Inventory turnover

		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	Dec 31, 2019
Cost of revenue (ttm)	US$ in thousands	786,579	268,869	298,568	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
Inventory	US$ in thousands	82,725	62,517	55,823	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
Inventory turnover		9.51	4.30	5.35	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

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $786,579K ÷ $82,725K
= 9.51

Inventory turnover is a critical financial metric that provides insights into how efficiently a company manages its inventory. For National Fuel Gas Company, the inventory turnover ratio has shown variability over the past years.

The inventory turnover ratio for National Fuel Gas Company ranged from a low of 1.90 in Dec 2019 to a high of 12.25 in Mar 2023. A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which can be a positive sign of efficient inventory management.

In more recent periods, there has been some fluctuation in the inventory turnover ratio, with the most recent value being 9.51 in Sep 2024. This implies that National Fuel Gas Company is turning over its inventory approximately 9.51 times during the year, which suggests a relatively efficient inventory management strategy.

It is essential for the company to monitor its inventory turnover closely to ensure that it strikes a balance between having enough inventory to meet customer demand and avoiding excess inventory that could tie up capital. A consistent and optimal inventory turnover ratio can help enhance the company's profitability and cash flow. Further analysis and comparison with industry benchmarks can provide a deeper understanding of National Fuel Gas Company's inventory management efficiency.