CenterPoint Energy Inc (CNP)

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	809,000	908,000	951,000	955,000	959,000	963,000	978,000	971,000	972,000	919,000	918,000	932,000	1,135,000	2,254,000	3,035,000	3,860,000	4,860,000	5,467,000	5,462,000	5,332,000
Inventory	US$ in thousands	770,000	810,000	729,000	781,000	876,000	882,000	636,000	512,000	608,000	593,000	440,000	377,000	500,000	534,000	462,000	375,000	546,000	572,000	479,000	371,000
Inventory turnover		1.05	1.12	1.30	1.22	1.09	1.09	1.54	1.90	1.60	1.55	2.09	2.47	2.27	4.22	6.57	10.29	8.90	9.56	11.40	14.37

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $809,000K ÷ $770,000K
= 1.05

Centerpoint Energy Inc.'s inventory turnover has been fluctuating over the past eight quarters. The inventory turnover ratio measures how efficiently the company manages its inventory by dividing the cost of goods sold by the average inventory balance.

From Q1 2022 to Q1 2023, there was a noticeable increasing trend in inventory turnover, with the ratio improving from 3.13 to 3.94. This suggests that the company was managing its inventory more efficiently during this period.

However, in Q2 and Q3 of 2023, the inventory turnover ratio decreased to 4.04 and 3.38, respectively, indicating a slight decline in inventory management efficiency compared to the previous quarter.

In Q4 2023, the inventory turnover ratio dropped further to 2.81, which is lower than the ratios observed in the earlier quarters. This decline may raise concerns about the company's inventory management efficiency during this quarter.

Overall, while the company experienced fluctuations in its inventory turnover ratio over the past eight quarters, it is important for Centerpoint Energy Inc. to closely monitor its inventory levels and management practices to ensure optimal efficiency and cost control.