PNM Resources Inc (PNM)

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	1,283,367	1,410,579	1,542,573	1,576,588	1,509,100	1,385,879	1,242,666	1,037,584	878,212	721,412	524,862	521,616	506,668	485,212	480,545	468,385	470,519	462,153	457,465	451,827
Inventory	US$ in thousands	98,034	83,391	81,017	64,290	66,733	64,835	75,414	70,244	65,061	66,750	61,966	62,113	66,417	67,435	69,676	74,124	77,929	77,742	74,490	68,008
Inventory turnover		13.09	16.92	19.04	24.52	22.61	21.38	16.48	14.77	13.50	10.81	8.47	8.40	7.63	7.20	6.90	6.32	6.04	5.94	6.14	6.64

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,283,367K ÷ $98,034K
= 13.09

The inventory turnover of PNM Resources Inc has fluctuated over the past 8 quarters as shown in the table. A high inventory turnover indicates that the company is efficient in managing its inventory levels, selling goods quickly, and replenishing stock effectively.

In Q1 2023, PNM Resources Inc had the highest inventory turnover ratio of 18.62, implying that the company sold and replaced its inventory nearly 19 times during that period. This suggests strong inventory management and efficient sales processes.

On the other hand, in Q2 2022, the inventory turnover ratio was at the lowest point of 11.75, indicating that the company took longer to sell and replenish its inventory during that quarter. However, this ratio improved in subsequent quarters.

Overall, PNM Resources Inc has shown varying levels of efficiency in managing its inventory over the examined period, with some quarters performing better than others. Monitoring future trends in inventory turnover will be crucial for assessing the company's operational efficiency and financial health.