UNITIL Corporation (UTL)

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	334,300	340,300	352,200	294,300	324,200	361,300	369,200	416,400	394,200	372,400	362,400	361,700	311,500	219,900	210,900	199,300	197,800	197,700	193,700	140,800
Inventory	US$ in thousands	14,200	13,800	14,200	14,000	13,500	12,600	12,900	12,400	11,400	10,100	9,700	9,400	8,600	8,600	8,600	9,200	8,500	8,500	9,200	9,200
Inventory turnover		23.54	24.66	24.80	21.02	24.01	28.67	28.62	33.58	34.58	36.87	37.36	38.48	36.22	25.57	24.52	21.66	23.27	23.26	21.05	15.30

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $334,300K ÷ $14,200K
= 23.54

The inventory turnover ratio measures the efficiency of a company in managing its inventory by determining how many times it sells and replaces its inventory during a specific period. A higher inventory turnover ratio indicates that the company is selling goods more quickly and efficiently.

Looking at the data provided for UNITIL Corporation, we observe fluctuations in the inventory turnover ratio over the given time periods. The inventory turnover ratio for UNITIL Corporation has shown an increasing trend from March 31, 2020, to June 30, 2022, reaching its peak at 38.48, suggesting improved efficiency in selling and replacing inventory during this period.

However, from September 30, 2022, to December 31, 2024, the inventory turnover ratio has gradually declined, indicating a potential slowdown in inventory turnover efficiency. The ratio decreased to 23.54 by December 31, 2024, which may imply that the company is taking longer to sell and replace its inventory compared to the previous periods.

Overall, UNITIL Corporation's inventory turnover ratio has fluctuated over the observed time frame, with periods of improvement followed by periods of decline. Further analysis and comparison with industry benchmarks could provide insights into the company's inventory management practices and operational performance.