American Electric Power Co Inc (AEP)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,067,000 | 1,434,500 | 1,556,800 | 1,400,700 | 1,297,500 |
| Inventory | US$ in thousands | 1,715,100 | 1,879,500 | 1,302,100 | 989,200 | 1,310,000 |
| Inventory turnover | 3.54 | 0.76 | 1.20 | 1.42 | 0.99 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,067,000K ÷ $1,715,100K
= 3.54
The inventory turnover ratio for American Electric Power Co Inc has shown a fluctuating trend over the past five years. In December 2020, the ratio stood at 0.99, indicating that the company took almost a year to sell and replace its inventory. However, there was a significant improvement by December 2021, with the ratio increasing to 1.42, suggesting that the company managed its inventory more efficiently, taking around 9 months to turn over its inventory.
By December 2022, the inventory turnover ratio slightly decreased to 1.20, still reflecting a relatively good turnover rate. However, in December 2023, the ratio dropped to 0.76, signaling a decline in inventory turnover efficiency, as it took over a year to sell and replace the inventory.
The most notable change occurred by December 2024, where the inventory turnover ratio surged to 3.54, indicating a substantial improvement in inventory management efficiency. This suggests that the company significantly reduced its inventory levels or increased sales volume compared to previous years.
In conclusion, the inventory turnover ratio for American Electric Power Co Inc has displayed varying levels of efficiency over the years, with notable improvements seen in 2021 and 2024. However, the fluctuations in the ratio highlight the importance of closely monitoring and managing inventory levels to optimize operational performance.
Peer comparison
Dec 31, 2024