Dominion Energy Inc (D)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,837,000 | 6,069,000 | 3,848,000 | 5,590,000 | 5,489,000 |
| Inventory | US$ in thousands | 1,281,000 | 1,528,000 | 1,631,000 | 1,550,000 | 1,616,000 |
| Inventory turnover | 3.00 | 3.97 | 2.36 | 3.61 | 3.40 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,837,000K ÷ $1,281,000K
= 3.00
The inventory turnover ratio for Dominion Energy Inc has shown fluctuations over the past five years. In 2023, the inventory turnover ratio was 2.52, indicating that the company generated $2.52 in sales for every dollar of inventory held during the year. This was a decrease from the previous year's ratio of 3.10.
The decreasing trend in inventory turnover from 2022 to 2023 may suggest that Dominion Energy Inc is experiencing challenges in efficiently managing its inventory levels or experiencing slower sales relative to the amount of inventory held. However, it is important to consider the industry norms and seasonal variations that may impact inventory turnover ratios.
Comparing the 2023 ratio to 2021 and 2022, where the ratios were 2.16 and 3.10 respectively, it appears that Dominion Energy Inc's inventory turnover had improved in 2022 but declined in 2023. Further analysis of the reasons behind these fluctuations, such as changes in demand, supply chain disruptions, or inventory management practices, would provide more insights into the company's operational efficiency.
Peer comparison
Dec 31, 2023