Spire Inc (SR)

Inventory turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	309,000	286,100	264,800	35,700	171,400
Inventory	US$ in thousands	263,900	279,500	422,300	305,000	191,500
Inventory turnover		1.17	1.02	0.63	0.12	0.90

September 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $309,000K ÷ $263,900K
= 1.17

The inventory turnover ratio of Spire Inc has varied over the past five years. In 2024, the inventory turnover ratio increased to 1.17 from 1.02 in 2023, indicating that the company sold its inventory more frequently during the year. This improvement suggests better inventory management efficiency in 2024 compared to the previous year.

In 2022, the inventory turnover ratio was 0.63, showing a decline from the prior year. This may indicate that Spire Inc had challenges in selling its inventory efficiently that year. The significant increase in the inventory turnover ratio from 0.12 in 2021 to 0.63 in 2022 suggests a positive shift in inventory management practices.

Despite the fluctuations in recent years, the inventory turnover ratio has generally been relatively low for Spire Inc. In 2020, the inventory turnover ratio was 0.90, indicating that the company took almost a year to sell its average inventory. This trend suggests that Spire Inc may have excess inventory levels or slower inventory turnover compared to some industry peers.

Overall, while there have been fluctuations in the inventory turnover ratio for Spire Inc, the recent increase in 2024 is a positive sign of improved inventory management efficiency. It will be essential for the company to continue monitoring and enhancing its inventory turnover ratio to optimize working capital and operational performance.