Ameren Corp (AEE)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,970,000 | 4,033,000 | 4,614,000 | 3,403,000 | 2,936,000 |
| Inventory | US$ in thousands | 244,000 | 733,000 | 667,000 | 592,000 | 521,000 |
| Inventory turnover | 16.27 | 5.50 | 6.92 | 5.75 | 5.64 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,970,000K ÷ $244,000K
= 16.27
Based on the provided data, Ameren Corp's inventory turnover has shown varying trends over the past five years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times a company sells and replaces its inventory during a specific period.
In 2020, Ameren Corp had an inventory turnover of 5.64, which suggests that the company sold and replenished its inventory approximately 5.64 times during the year. This ratio slightly increased to 5.75 in 2021, indicating a slightly more efficient management of inventory.
However, in 2022, there was a significant improvement in the inventory turnover ratio, which surged to 6.92. This suggests that Ameren Corp significantly enhanced its inventory management practices, potentially reducing excess inventory levels and improving working capital efficiency.
The following year, in 2023, the inventory turnover ratio decreased to 5.50, indicating a potential slowdown in inventory turnover compared to the previous year. It is essential for the company to analyze the reasons behind this decline and take appropriate actions to optimize inventory levels.
Finally, in 2024, Ameren Corp experienced a substantial surge in inventory turnover to 16.27, which signifies a remarkable improvement in inventory management efficiency. This exceptionally high ratio could imply that the company efficiently sold and restocked its inventory multiple times during the year.
Overall, Ameren Corp has demonstrated fluctuations in its inventory turnover ratios over the years, with significant improvements and declines at different points. It is crucial for the company to consistently monitor and manage its inventory effectively to maintain a balance between carrying costs and stockouts while maximizing operational efficiency.
Peer comparison
Dec 31, 2024