TXNM Energy, Inc. (TXNM)

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	677,732	695,049	765,582	784,343	893,871	1,128,475	1,358,441	1,489,934	1,515,768	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
Inventory	US$ in thousands	166,861	120,519	115,144	104,491	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
Inventory turnover		4.06	5.77	6.65	7.51	9.12	13.53	16.77	23.18	22.71	21.38	16.48	14.77	13.50	10.81	8.47	8.40	7.63	7.20	6.90	6.32

December 31, 2024 calculation

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

TXNM Energy's inventory turnover has shown a consistently increasing trend from March 31, 2020, to March 31, 2024. The ratio has improved from 6.32 to 7.51, indicating that the company has been more efficient in managing its inventory during this period. The significant increase in inventory turnover from September 30, 2021, to December 31, 2022, reaching a peak of 22.71, suggests that the company has been able to sell its inventory more frequently within a particular time frame. However, there was a decline in the inventory turnover ratio in the following periods until December 31, 2024, where it reached 4.06. This decline may indicate potential inventory management challenges that the company needs to address to ensure optimal utilization of its inventory. Overall, the trend in inventory turnover reflects fluctuations in sales and inventory management effectiveness within the company over the analyzed period.