DTE Energy Company (DTE)
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 | 1,118,000 | 1,048,000 | 1,044,000 | 1,040,000 | 1,043,000 | 990,000 | 981,000 | 972,000 | 987,000 | 933,000 | 966,000 | 997,000 | 1,013,000 | 1,083,000 | 1,052,000 | 1,001,000 | 1,008,000 | 870,000 | 879,000 | 893,000 |
| Inventory | US$ in thousands | 1,245,000 | 1,391,000 | 1,164,000 | 1,049,000 | 1,054,000 | 1,110,000 | 938,000 | 806,000 | 942,000 | 1,048,000 | 855,000 | 729,000 | 858,000 | 915,000 | 46,000 | 0 | 107,000 | 815,000 | 785,000 | 707,000 |
| Inventory turnover | 0.90 | 0.75 | 0.90 | 0.99 | 0.99 | 0.89 | 1.05 | 1.21 | 1.05 | 0.89 | 1.13 | 1.37 | 1.18 | 1.18 | 22.87 | — | 9.42 | 1.07 | 1.12 | 1.26 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,118,000K ÷ $1,245,000K
= 0.90
The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times a company's inventory is sold and replaced over a specific period. Looking at the inventory turnover ratios for DTE Energy Company from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio.
The inventory turnover ratio for DTE Energy was relatively stable around 1.00 to 1.20 from March 2020 to March 2023. This indicates that the company was able to sell and replace its inventory at a consistent pace during this period. However, there was a significant increase in the ratio to 22.87 in June 2021, indicating a sharp improvement in inventory management efficiency, possibly due to factors like better demand forecasting or inventory control initiatives.
Subsequently, the inventory turnover ratio declined to 0.75 by September 30, 2024, which could suggest that the company had excess inventory relative to its sales during that quarter. A low inventory turnover ratio may indicate overstocking, obsolete inventory, or declining sales.
Overall, the inventory turnover ratios demonstrate varying levels of efficiency in managing inventory for DTE Energy Company over the specified period, reflecting potential changes in sales volumes, inventory control strategies, or market conditions. A consistent and optimal inventory turnover ratio is essential for a company to prevent excess inventory holding costs and ensure healthy liquidity.
Peer comparison
Dec 31, 2024
Dec 31, 2024