DTE Energy Company (DTE)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,118,000 | 1,043,000 | 967,000 | 1,017,000 | 1,048,000 |
| Inventory | US$ in thousands | 1,245,000 | 1,054,000 | 942,000 | 858,000 | 107,000 |
| Inventory turnover | 0.90 | 0.99 | 1.03 | 1.19 | 9.79 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,118,000K ÷ $1,245,000K
= 0.90
The inventory turnover ratio for DTE Energy Company has exhibited a notable decline over the years. In December 2020, the inventory turnover stood at a healthy 9.79, indicating that the company was efficiently managing its inventory by selling and replacing it nearly 10 times during that year. However, this ratio has steadily decreased to 1.19 by December 2021, and further dropped to 1.03 in December 2022, showing a significant slowdown in the rate at which inventory is being turned over.
The trend continued with the inventory turnover ratio decreasing to 0.99 in December 2023, and eventually hitting 0.90 by December 2024. This downward trend suggests that DTE Energy Company might be facing challenges in managing its inventory effectively, potentially leading to excess stock or obsolete inventory. A consistently decreasing inventory turnover ratio can impact the company's liquidity, profitability, and overall operational efficiency. Further analysis and investigation into the reasons behind this decline in inventory turnover are warranted to address any underlying issues and improve the company's inventory management practices.
Peer comparison
Dec 31, 2024