The AES Corporation (AES)
Inventory turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 7,840,000 | 7,945,000 | 8,187,000 | 8,143,000 |
| Inventory | US$ in thousands | 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 | 487,000 | 495,000 | 496,000 | 579,000 |
| Inventory turnover | 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 | 16.10 | 16.05 | 16.51 | 14.06 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,164,000K ÷ $712,000K
= 14.28
The inventory turnover ratio for AES Corp. has been relatively consistent over the past 8 quarters, ranging from a low of 9.54 to a high of 14.28. This ratio indicates how many times a company's inventory is sold and replaced over a specific period, with higher values suggesting efficient inventory management.
In the most recent quarter (Q4 2023), the inventory turnover ratio increased to 14.28, reflecting an improvement in the company's ability to sell and replenish inventory quickly. This could be attributed to effective inventory management practices or an increase in demand for AES Corp.'s products.
Overall, AES Corp. has demonstrated a strong ability to manage its inventory efficiently, with turnover ratios consistently above 9. This indicates that the company is effectively managing its inventory levels, avoiding excess stock that could tie up financial resources, while also ensuring product availability to meet customer demand.