Consolidated Edison Inc (ED)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	5,157,000	5,102,000	5,093,000	5,141,000	5,164,000	5,586,000	5,527,000	5,443,000	5,362,000	5,155,000	5,072,000	4,976,000	4,880,000	4,463,000	4,343,000	4,264,000	4,172,000	4,041,000	3,963,000	3,859,000
Inventory	US$ in thousands	469,000	455,000	434,000	431,000	492,000	533,000	449,000	404,000	437,000	405,000	360,000	339,000	356,000	353,000	336,000	326,000	352,000	358,000	344,000	327,000
Inventory turnover		11.00	11.21	11.74	11.93	10.50	10.48	12.31	13.47	12.27	12.73	14.09	14.68	13.71	12.64	12.93	13.08	11.85	11.29	11.52	11.80

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,157,000K ÷ $469,000K
= 11.00

Consolidated Edison, Inc. has shown a consistent trend of improvement in its inventory turnover ratio over the past eight quarters. The inventory turnover ratio measures how effectively the company is managing its inventory by calculating the number of times it sells and replaces its inventory during a specific period.

In Q1 2022, the inventory turnover ratio was 7.43, which increased to 10.13 in Q1 2023, indicating a strong improvement in inventory management efficiency. Subsequently, the ratio experienced a slight decrease in Q2 2023 to 9.42, followed by further declines in Q3 2023 to 8.82 and in Q4 2023 to 7.79.

Overall, Consolidated Edison, Inc. has maintained relatively high inventory turnover ratios throughout the examined period, suggesting efficient management of inventory levels and a quicker conversion of inventory into sales. However, the slight decrease in the most recent quarters may indicate a potential need for the company to assess its inventory management practices to ensure optimal efficiency going forward.