Southwest Gas Holdings Inc (SWX)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,101,270 | 4,414,750 | 3,965,140 | 2,859,520 | 2,480,380 |
| Inventory | US$ in thousands | — | 83,400 | 2,187,650 | 291,145 | 2,053 |
| Inventory turnover | — | 52.93 | 1.81 | 9.82 | 1,208.17 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,101,270K ÷ $—K
= —
Southwest Gas Holdings Inc's inventory turnover has shown significant fluctuations over the years, as reflected in the data provided. In 2020, the inventory turnover was exceptionally high at 1,208.17, indicating that the company sold its inventory more than a thousand times during that period. This could suggest efficient inventory management or possible inventory obsolescence issues.
By the end of 2021, the inventory turnover dropped to 9.82, which may indicate a slowdown in sales relative to the amount of inventory held. This could be a concern if the inventory is not being sold as quickly as before, leading to potential liquidity challenges or excess inventory levels.
In 2022, the inventory turnover further declined to 1.81, signaling a potential inventory management issue where the company might be carrying too much inventory relative to its sales volume. This could tie up capital in unsold inventory and impact the company's profitability and cash flow.
The following year, in 2023, the inventory turnover surged to 52.93, showing a significant improvement in inventory management efficiency. A higher inventory turnover ratio suggests that the company is selling its inventory more rapidly, which can lead to better cash flow and profitability.
However, it's important to note that the data for 2024 is missing, represented as a dash. Without this information, it is challenging to assess the latest status of Southwest Gas Holdings Inc's inventory turnover. In conclusion, the trend in inventory turnover for Southwest Gas Holdings Inc reflects fluctuations that could be indicative of changes in sales volumes, inventory management practices, or market conditions.
Peer comparison
Dec 31, 2024