Ameren Corp (AEE)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,341,000 | 2,201,000 | 2,061,000 | 1,945,000 | 2,318,000 |
| Inventory | US$ in thousands | 733,000 | 667,000 | 592,000 | 521,000 | 494,000 |
| Inventory turnover | 3.19 | 3.30 | 3.48 | 3.73 | 4.69 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,341,000K ÷ $733,000K
= 3.19
Ameren Corp.'s inventory turnover ratio has fluctuated over the past five years. The inventory turnover ratio indicates how efficiently the company manages its inventory by measuring how many times the inventory is sold and replaced within a specific period.
In 2023, the inventory turnover ratio decreased to 2.96 from 4.01 in 2022, suggesting a decrease in the rate at which Ameren Corp. is selling and replacing its inventory. This could indicate potential inefficiencies in inventory management or a slower sales process compared to the previous year.
Comparing 2023 to earlier years, the 2023 inventory turnover of 2.96 is higher than the ratios in 2021 and 2020, indicating an improvement in inventory turnover efficiency over those years. However, it is lower than the 2019 ratio, which was 2.21.
Overall, Ameren Corp. should further analyze the reasons behind the decrease in inventory turnover in 2023 and take appropriate actions to optimize its inventory management processes for improved operational efficiency and profitability.
Peer comparison
Dec 31, 2023