Avista Corporation (AVA)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 798,000 | 702,372 | 735,862 | 497,123 | 398,509 |
| Inventory | US$ in thousands | 193,000 | 159,984 | 107,674 | 84,733 | 67,451 |
| Inventory turnover | 4.13 | 4.39 | 6.83 | 5.87 | 5.91 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $798,000K ÷ $193,000K
= 4.13
The inventory turnover for Avista Corporation has shown some fluctuations over the five-year period. In 2020, the company had an inventory turnover ratio of 5.91, indicating that its inventory was being sold and replaced approximately 5.91 times during the year. The ratio decreased slightly to 5.87 in 2021 before experiencing a notable increase to 6.83 in 2022, suggesting more efficient inventory management.
However, there was a significant decline in the inventory turnover ratio in 2023, dropping to 4.39, and further decreasing to 4.13 in 2024. These lower ratios suggest that Avista Corporation may have faced challenges in efficiently selling and replenishing its inventory during these years.
Overall, the trend in Avista Corporation's inventory turnover indicates variations in the company's ability to manage and sell its inventory effectively. It would be important for the company to analyze the reasons behind these fluctuations and potentially implement strategies to improve inventory turnover efficiency in the future.
Peer comparison
Dec 31, 2024