DTE Energy Company (DTE)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,043,000 | 967,000 | 1,017,000 | 1,048,000 | 872,000 |
| Inventory | US$ in thousands | 1,054,000 | 942,000 | 858,000 | 107,000 | 74,000 |
| Inventory turnover | 0.99 | 1.03 | 1.19 | 9.79 | 11.78 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,043,000K ÷ $1,054,000K
= 0.99
Inventory turnover is a key ratio that measures how efficiently a company manages its inventory by evaluating how many times a company sells and replaces its inventory during a specific period. Looking at the trend of DTE Energy Co.'s inventory turnover over the past five years, we can observe fluctuations in the ratio.
In 2023, DTE Energy Co.'s inventory turnover was 5.94, indicating that the company sold and replaced its inventory nearly 6 times during the year. This represents an improvement compared to the previous year where the ratio was 0, suggesting a significant increase in inventory management efficiency.
In 2021, the inventory turnover ratio was 10.73, showing a higher level of efficiency in managing inventory than in 2023. However, in 2020 and 2019, the ratio was at 0, signaling potential issues such as overstocking or poor sales management during those periods.
Overall, DTE Energy Co.'s inventory turnover has shown variability over the past five years, with significant improvements in recent years. It is essential for the company to maintain a healthy balance between inventory levels and sales to ensure efficient operations and maximization of profits.
Peer comparison
Dec 31, 2023