NorthWestern Corporation (NWE)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024
Cost of revenue (ttm)	US$ in thousands	139,374	131,851	126,282
Inventory	US$ in thousands	122,940	121,568	114,956
Inventory turnover		1.13	1.08	1.10

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $139,374K ÷ $122,940K
= 1.13

The inventory turnover of NorthWestern Corporation for the periods ending June 30, 2024, September 30, 2024, and December 31, 2024 were 1.10, 1.08, and 1.13, respectively.

The inventory turnover ratio measures the number of times a company sells and replaces its inventory during a specific period. A higher inventory turnover ratio generally indicates that a company is efficiently managing its inventory levels and selling products quickly.

In this case, NorthWestern Corporation's inventory turnover has been relatively stable with a slight increase over the periods analyzed. This could suggest effective inventory management practices and efficient sales operations. A consistent or improving inventory turnover ratio is generally viewed positively as it indicates that the company is effectively managing its inventory levels and turning inventory into sales.

It is important for NorthWestern Corporation to continue monitoring its inventory turnover ratio to ensure that inventory is being managed effectively and efficiently to support the company's sales and revenue growth objectives.