Northwest Natural Gas Co (NWN)

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	192,148	190,288	188,102	183,065	177,161	173,171	171,873	171,053	169,022	165,412	161,578	158,068	152,958	164,744	164,393	159,714	171,357	250,198
Inventory	US$ in thousands	138,171	94,585	67,502	41,392	110,596	98,725	65,983	33,377	76,662	59,997	39,024	26,237	60,691	45,082	44,009	34,390	60,485	41,230	23,100	19,540
Inventory turnover		1.39	2.01	2.79	4.42	1.60	1.75	2.60	5.12	2.20	2.76	4.14	6.02	2.52	3.65	3.74	4.64	2.83	6.07

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $192,148K ÷ $138,171K
= 1.39

Northwest Natural Holding Co's inventory turnover has shown fluctuations over the past eight quarters. In Q1 2022, the inventory turnover was at its highest with a value of 11.83, indicating that the company sold and replaced its entire inventory almost 12 times during that period. This suggests efficient management of inventory and strong sales performance.

Subsequently, there was a gradual decrease in inventory turnover until Q3 2022 when it reached 3.80, the lowest point in the given period, reflecting slower inventory turnover. However, this trend reversed in the following quarters, with an upward trajectory seen in Q4 2022 and Q1 2023.

In Q2 2023, the inventory turnover significantly increased to 7.59, indicating an improvement in inventory management efficiency, possibly due to increased sales or better inventory control practices. This trend continued into Q3 2023, with a further increase to 5.56 and then to 4.44 in Q4 2023.

Overall, while there have been fluctuations in Northwest Natural Holding Co's inventory turnover over the past two years, the company seems to have made some improvements in managing its inventory more effectively in the recent quarters. Monitoring this metric going forward will be crucial to ensure continued operational efficiency.