Edison International (EIX)
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 | 11,107,000 | 10,825,000 | 10,404,000 | 9,547,000 | 9,624,000 | 10,106,000 | 10,700,000 | 10,977,000 | 11,099,000 | 10,637,000 | 10,483,000 | 9,855,000 | 9,188,000 | 9,047,000 | 8,802,000 | 8,595,000 | 8,547,000 | 8,455,000 | 7,939,000 | 7,839,000 |
| Inventory | US$ in thousands | 538,000 | 533,000 | 534,000 | 519,000 | 527,000 | 505,000 | 511,000 | 500,000 | 474,000 | 439,000 | 438,000 | 434,000 | 420,000 | 412,000 | 406,000 | 416,000 | 405,000 | 387,000 | 382,000 | 363,000 |
| Inventory turnover | 20.64 | 20.31 | 19.48 | 18.39 | 18.26 | 20.01 | 20.94 | 21.95 | 23.42 | 24.23 | 23.93 | 22.71 | 21.88 | 21.96 | 21.68 | 20.66 | 21.10 | 21.85 | 20.78 | 21.60 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $11,107,000K ÷ $538,000K
= 20.64
The inventory turnover ratio for Edison International has shown fluctuations over the past few years, indicating changes in how efficiently the company manages its inventory.
From March 31, 2020, to December 31, 2021, the inventory turnover ratio remained relatively stable, ranging between 20.66 and 21.88, suggesting that the company was efficiently converting its inventory into sales during this period. This indicates effective inventory management practices and a balance between stock levels and sales.
However, from March 31, 2022, to June 30, 2024, there was a notable increase in the inventory turnover ratio, reaching a peak of 24.23 on September 30, 2022. This significant rise may indicate that Edison International was selling off its inventory at a faster rate compared to previous periods. This may be due to various factors such as improved demand forecasting, efficient inventory control, or streamlining of production processes.
Subsequently, from December 31, 2022, to December 31, 2024, there was a slight decline in the inventory turnover ratio, leveling off around 20.64. This dip might suggest potential challenges in managing inventory efficiently during this period, leading to a slower rate of inventory turnover.
Overall, Edison International's inventory turnover ratio provides insights into the company's inventory management effectiveness and operational efficiency. It is essential for the company to analyze the reasons behind these fluctuations to optimize inventory levels, improve cash flow, and enhance overall performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024