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.


Peer comparison

Dec 31, 2023