One Gas Inc (OGS)

Inventory turnover

		Dec 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	1,312,712	1,316,532	1,197,067	1,179,683	1,379,807	1,749,699	1,918,818	1,968,793	1,931,352	1,731,261	1,656,363	1,554,768	1,224,682	1,118,106	1,093,745	1,062,537	968,560	947,361	956,684	974,727
Inventory	US$ in thousands	252,846	275,187	224,792	190,800	264,746	279,325	217,336	171,999	340,078	410,343	261,125	133,132	234,538	219,416	137,823	95,468	146,712	160,869	126,778	101,422
Inventory turnover		5.19	4.78	5.33	6.18	5.21	6.26	8.83	11.45	5.68	4.22	6.34	11.68	5.22	5.10	7.94	11.13	6.60	5.89	7.55	9.61

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,312,712K ÷ $252,846K
= 5.19

One Gas Inc's inventory turnover ratio has fluctuated over the past few years, indicating varying efficiency in managing its inventory.

The inventory turnover ratio is a measure of how many times a company's inventory is sold and replaced over a particular period. A higher inventory turnover ratio is typically viewed positively as it suggests that the company is selling its inventory quickly and efficiently.

From the data provided, we observe that One Gas Inc's inventory turnover ratio ranged from a low of 4.22 on September 30, 2022, to a high of 11.68 on March 31, 2022. Notably, the inventory turnover ratio peaked in the first and third quarters of fiscal years 2022 and 2023, indicating efficient inventory management during these periods. Conversely, the ratio dropped to its lowest point in the second and fourth quarters of fiscal years 2022 and 2024, suggesting potential challenges in selling inventory quickly during those periods.

Overall, One Gas Inc should aim to maintain a balance in its inventory turnover ratio, ensuring efficient management of inventory levels to meet customer demand while avoiding excessive holding costs. Tracking this ratio over time can provide insights into the company's operational efficiency and inventory management practices.