Consolidated Edison Inc (ED)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,157,000 | 5,164,000 | 5,363,000 | 4,881,000 | 4,172,000 |
| Inventory | US$ in thousands | 469,000 | 492,000 | 437,000 | 356,000 | 352,000 |
| Inventory turnover | 11.00 | 10.50 | 12.27 | 13.71 | 11.85 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,157,000K ÷ $469,000K
= 11.00
Consolidated Edison, Inc.'s inventory turnover has shown some fluctuations over the past five years. The company's inventory turnover ratio was 7.79 in 2023, indicating that the company generated approximately 7.79 times of sales revenue from its average inventory during the year. This represents a slight decrease from the previous year's ratio of 8.29 in 2022.
The inventory turnover ratio in 2023 is higher compared to 2021 and 2020, suggesting an improvement in the efficiency of managing and selling inventory. However, the ratio is lower than in 2019, where it reached 7.48. This could indicate that the company held more inventory relative to its sales in 2023 compared to 2019.
Overall, a higher inventory turnover ratio is generally preferred as it indicates that the company is efficiently managing its inventory levels and converting them into sales. However, it is essential to consider industry benchmarks and specific business circumstances when evaluating the significance of these fluctuations in Consolidated Edison, Inc.'s inventory turnover ratio over the years.
Peer comparison
Dec 31, 2023