The AES Corporation (AES)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 9,964,000 | 9,896,000 | 9,845,000 | 9,985,000 | 10,164,000 | 10,187,000 | 10,406,000 | 10,392,000 | 10,069,000 | 9,783,000 | 9,324,000 | 8,781,000 | 8,430,000 | 7,873,000 | 7,386,000 | 7,107,000 | 6,967,000 | 7,184,000 | 7,319,000 | 7,607,000 |
| Inventory | US$ in thousands | 593,000 | 646,000 | 661,000 | 639,000 | 712,000 | 798,000 | 774,000 | 864,000 | 1,055,000 | 998,000 | 871,000 | 688,000 | 604,000 | 577,000 | 445,000 | 446,000 | 461,000 | 474,000 | 504,000 | 461,000 |
| Inventory turnover | 16.80 | 15.32 | 14.89 | 15.63 | 14.28 | 12.77 | 13.44 | 12.03 | 9.54 | 9.80 | 10.70 | 12.76 | 13.96 | 13.64 | 16.60 | 15.93 | 15.11 | 15.16 | 14.52 | 16.50 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $9,964,000K ÷ $593,000K
= 16.80
The inventory turnover ratio for The AES Corporation has shown fluctuations over the past few years. It started at a high level of 16.50 in March 2020, indicating that the company's inventory was turning over approximately 16.5 times during that period.
Subsequently, the ratio decreased slightly to 14.52 in June 2020 but then improved to 15.16 in September 2020 and 15.11 in December 2020. This indicates that the company was managing its inventory efficiently during these quarters, turning it over more frequently.
The trend continued with an increase to 15.93 in March 2021 and a peak at 16.60 in June 2021, showing a further improvement in inventory management. However, there was a noticeable decline in the inventory turnover ratio to 9.80 in September 2022 and 9.54 in December 2022, signaling that the company may have faced challenges with inventory management efficiency during that period.
The ratio then recovered to 15.63 in March 2024, indicating an improvement in managing inventory turnover. Overall, while there were fluctuations in the inventory turnover ratio over the years, The AES Corporation generally maintained a relatively high inventory turnover, which is positive as it signifies efficient management of inventory levels. However, the company should continue to monitor and manage its inventory effectively to ensure optimal performance and cost control.