American Electric Power Co Inc (AEP)

Inventory turnover

Dec 31, 2024 Sep 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019
Cost of revenue (ttm) US$ in thousands 4,752,700 854,600 799,100 760,800 894,600 918,400 1,004,400 1,027,400 950,000 918,700 851,900 833,200 834,400 811,200 774,500 764,000 811,900 810,900 795,500 768,200
Inventory US$ in thousands 1,715,100 1,685,700 1,770,300 1,879,500 1,720,000 1,681,800 1,457,200 1,302,100 1,134,000 1,102,300 966,800 989,200 978,500 1,188,400 1,271,900 1,310,000 1,267,300 1,279,800 1,195,900 1,169,200
Inventory turnover 2.77 0.51 0.45 0.40 0.52 0.55 0.69 0.79 0.84 0.83 0.88 0.84 0.85 0.68 0.61 0.58 0.64 0.63 0.67 0.66

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,752,700K ÷ $1,715,100K
= 2.77

American Electric Power Co Inc's inventory turnover has shown some fluctuations over the period analyzed. The inventory turnover ratio measures how efficiently the company is managing its inventory levels. A higher inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently.

In December 31, 2019, the inventory turnover ratio was 0.66, indicating that the company's inventory was turning over approximately 0.66 times during that period. This suggests that the company's inventory was not being sold as quickly as in other periods.

The ratio remained relatively stable around 0.60 to 0.70 for the following years until December 31, 2021, where it increased to 0.84 and then further improved to 0.88 by March 31, 2022. This indicates that the company was managing its inventory more efficiently during these periods.

However, in the subsequent quarters, the inventory turnover ratio decreased significantly, reaching as low as 0.40 by December 31, 2023. This sharp decline may indicate potential issues with inventory management, such as overstocking or slow sales.

The ratio improved slightly to 0.51 by December 31, 2024, but it significantly surged to 2.77 by December 31, 2024. This sudden increase could indicate a more aggressive sales strategy, inventory optimization, or other factors contributing to a quicker inventory turnover.

Overall, the trend of American Electric Power Co Inc's inventory turnover ratio suggests fluctuations in the efficiency of managing inventory levels, with periods of both improvement and decline. Further analysis would be needed to understand the underlying reasons behind these fluctuations and their impact on the company's operations and financial performance.