CenterPoint Energy Inc (CNP)
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 | 4,667,000 | 4,753,000 | 4,621,000 | 4,726,000 | 5,010,000 | 5,539,000 | 5,769,000 | 5,884,000 | 5,924,000 | 5,538,000 | 5,460,000 | 5,322,000 | 5,145,000 | 4,966,000 | 4,865,000 | 4,786,000 | 4,489,000 | 5,608,000 | 6,618,000 | 7,762,000 |
| Inventory | US$ in thousands | 714,000 | 733,000 | 702,000 | 663,000 | 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 |
| Inventory turnover | 6.54 | 6.48 | 6.58 | 7.13 | 6.51 | 6.84 | 7.91 | 7.53 | 6.76 | 6.28 | 8.58 | 10.39 | 8.46 | 8.37 | 11.06 | 12.69 | 8.98 | 10.50 | 14.32 | 20.70 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,667,000K ÷ $714,000K
= 6.54
CenterPoint Energy Inc's inventory turnover has shown a declining trend over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio, which measures how efficiently a company manages its inventory by indicating the number of times its inventory is sold and replaced in a given period, decreased from 20.70 on March 31, 2020, to 6.54 on December 31, 2024.
A high inventory turnover ratio generally indicates that a company is efficiently managing its inventory and quickly selling its goods. On the other hand, a declining inventory turnover ratio over time may suggest inefficiencies in inventory management, such as overstocking, slow-moving inventory, or declining sales. In the case of CenterPoint Energy Inc, the decreasing trend in inventory turnover may raise concerns about its ability to efficiently control and sell its inventory.
It is important for the company to closely monitor and address the factors contributing to the decline in inventory turnover to optimize its inventory management practices and improve overall operational efficiency. Potential actions may include reassessing inventory levels, improving demand forecasting, optimizing supply chain processes, and identifying and addressing slow-moving inventory items. Overall, a lower inventory turnover ratio may require further investigation and corrective actions to enhance the company's financial performance and competitiveness in the market.
Peer comparison
Dec 31, 2024
Dec 31, 2024