Essential Utilities (FRA:A2A) Inventory Turnover : 1.60 (As of Dec. 2023)

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What is Essential Utilities Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Essential Utilities's Cost of Goods Sold for the three months ended in Dec. 2023 was €178 Mil. Essential Utilities's Average Total Inventories for the quarter that ended in Dec. 2023 was €111 Mil. Essential Utilities's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.60.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Essential Utilities's Days Inventory for the three months ended in Dec. 2023 was 56.99.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Essential Utilities's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.25.

Essential Utilities Inventory Turnover Historical Data

The historical data trend for Essential Utilities's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Essential Utilities Inventory Turnover Chart

Essential Utilities Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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19.68

17.69

10.88

8.04

5.83

Essential Utilities Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															1.94	2.65	1.71	1.40	1.60

Essential Utilities Inventory Turnover Calculation

Essential Utilities's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	850.815	/ (	(188.55	+	103.316)	/	2 )
=	850.815	/	145.933
=	5.83

Essential Utilities's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	178.325	/ (	(119.416	+	103.316)	/	2 )
=	178.325	/	111.366
=	1.60

Essential Utilities (FRA:A2A) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Essential Utilities's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	111.366	/	178.325	*	365 / 4
	=	56.99

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Essential Utilities's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	111.366	/	439.627
	=	0.25

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Essential Utilities Inventory Turnover Related Terms

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Essential Utilities (FRA:A2A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Essential Utilities Inc (FRA:A2A) » Definitions » Inventory Turnover

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Traded in Other Exchanges

WTRG:USA A2A:Germany

Address

762 West Lancaster Avenue, Bryn Mawr, PA, USA, 19010-3489

Website

https://www.essential.co

Essential Utilities is a Pennsylvania-based holding company for U.S. water, wastewater, and natural gas distribution utilities. The company's water business serves 3 million people in eight states. Nearly three fourths of its water earnings come from Pennsylvania, primarily suburban Philadelphia. Its Peoples subsidiary serves more than 700,000 gas distribution customers in Pennsylvania and Kentucky. Essential exited its noncore competitive water and energy services businesses.

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