UNITIL Corporation (UTL)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	374,100	394,200	311,500	800	700
Inventory	US$ in thousands	13,500	11,400	8,600	8,500	7,900
Inventory turnover		27.71	34.58	36.22	0.09	0.09

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $374,100K ÷ $13,500K
= 27.71

Unitil Corp.'s inventory turnover ratio has shown some fluctuations over the past five years, ranging from 20.59 to 25.66. It indicates how efficiently the company is managing its inventory by selling and replenishing it within a certain period.

A higher inventory turnover ratio suggests that Unitil Corp. is selling its inventory quickly, which could be due to efficient management, strong demand, or effective inventory control. However, the decreasing trend in recent years could also indicate potential issues such as overstocking, slow-moving inventory, or lower demand for its products.

Overall, Unitil Corp. should continue monitoring its inventory turnover ratio to ensure optimal inventory management and operational efficiency in the future.