TXNM Energy, Inc. (TXNM)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	677,732	893,871	1,135,290	788,784	585,218
Inventory	US$ in thousands	166,861	98,034	66,733	65,061	66,417
Inventory turnover		4.06	9.12	17.01	12.12	8.81

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $677,732K ÷ $166,861K
= 4.06

TXNM Energy, Inc.'s inventory turnover has shown fluctuations over the past five years. The inventory turnover ratio indicates how efficiently the company manages its inventory by measuring the number of times inventory is sold and replaced within a specific period.

In December 2020, TXNM had an inventory turnover of 8.81, indicating that the company sold and replaced its inventory approximately 8.81 times during that year. The ratio increased significantly to 12.12 by December 2021, suggesting improved efficiency in managing inventory.

By December 2022, the inventory turnover ratio further increased to 17.01, reflecting a more rapid turnover of inventory, which could be a positive sign of effective inventory management. However, there was a notable decline in December 2023, with the ratio dropping to 9.12, indicating a decrease in the frequency of inventory turnover.

The most recent data from December 2024 shows a significant decrease in inventory turnover to 4.06, which may raise concerns about potentially inefficient inventory management practices or excess inventory levels compared to sales volume.

Overall, while TXNM Energy, Inc. has experienced fluctuations in its inventory turnover ratio over the years, it is essential for the company to closely monitor and manage its inventory levels to optimize efficiency and maintain profitability in its operations.