Northwest Natural Gas Co (NWN)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 755,383 | 773,603 | 696,128 | 531,281 | 473,175 |
| Inventory | US$ in thousands | 106,954 | 112,571 | 87,096 | 57,262 | 42,691 |
| Inventory turnover | 7.06 | 6.87 | 7.99 | 9.28 | 11.08 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $755,383K ÷ $106,954K
= 7.06
Northwest Natural Gas Co's inventory turnover has shown a declining trend over the past five years. In 2020, the inventory turnover ratio was 11.08, indicating the company sold and replaced its inventory over 11 times during that year. However, the ratio decreased to 9.28 in 2021, 7.99 in 2022, 6.87 in 2023, before slightly increasing to 7.06 in 2024.
A higher inventory turnover ratio generally suggests efficient management of inventory by quickly selling and replenishing stock. The decreasing trend in Northwest Natural Gas Co's inventory turnover may indicate issues such as overstocking, slow-moving inventory, or challenges in forecasting demand accurately. It is essential for the company to closely monitor and optimize its inventory management practices to improve efficiency and liquidity.
Peer comparison
Dec 31, 2024