The AES Corporation (AES)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,164,000 | 10,069,000 | 8,430,000 | 6,967,000 | 7,840,000 |
| Inventory | US$ in thousands | 712,000 | 1,055,000 | 604,000 | 461,000 | 487,000 |
| Inventory turnover | 14.28 | 9.54 | 13.96 | 15.11 | 16.10 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,164,000K ÷ $712,000K
= 14.28
The inventory turnover of AES Corp. has fluctuated over the past five years, indicating changes in the efficiency of managing inventory. The ratio was the lowest in 2022 at 9.54 times, suggesting that the company took longer to sell and replace its inventory that year. Conversely, in 2019, AES Corp. achieved the highest inventory turnover of 16.10, reflecting a more rapid inventory turnover rate.
Overall, the inventory turnover ratio has shown some volatility, with fluctuations from 9.54 to 16.10 times over the five-year period. This variability may be influenced by factors such as changes in demand for AES Corp.'s products, inventory management practices, or supply chain disruptions. Further analysis of the company's operations and industry trends could provide more insights into the reasons behind these fluctuations and help assess the effectiveness of AES Corp.'s inventory management strategies.