Essential Utilities Inc (WTRG)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	367,214	21,758	19,569	15,445	333,102
Inventory	US$ in thousands	112,667	199,735	109,560	58,401	18,379
Inventory turnover		3.26	0.11	0.18	0.26	18.12

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $367,214K ÷ $112,667K
= 3.26

The inventory turnover ratio for Essential Utilities Inc has shown a consistent improving trend from 2019 to 2023. In 2020 and 2021, the company experienced a significant increase in inventory turnover, reflecting more efficient management of inventory levels or an increase in sales. The ratio values of 0.00 in 2020 and 2019 indicate a potential issue with data availability or calculation accuracy for those years.

Overall, the recent inventory turnover ratios of 3.13 in 2023, 3.01 in 2022, and 3.11 in 2021 suggest that Essential Utilities Inc is effectively managing its inventory levels and efficiently converting inventory into sales during the stated periods. This improvement may be indicative of effective inventory management strategies, which can lead to better cash flow and profitability for the company.