Edison International (EIX)

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	7,707,000	7,642,000	4,768,000	5,045,000	5,167,000	5,157,000	5,239,000	4,611,000	3,944,000	3,973,000	3,867,000	1,812,000	-31,000	23,000	9,000	197,000	106,000	67,000	98,000	-67,000
Inventory	US$ in thousands	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	364,000	348,000	331,000	312,000
Inventory turnover		14.62	15.13	9.33	10.09	10.90	11.75	11.96	10.62	9.39	9.64	9.52	4.36	-0.08	0.06	0.02	0.54	0.29	0.19	0.30	-0.21

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,707,000K ÷ $527,000K
= 14.62

Based on the data provided for Edison International, the inventory turnover ratio for each quarter from Q1 2022 to Q4 2023 is consistently reported as 0.00. This indicates that the company is not efficiently managing its inventory relative to its cost of goods sold during these periods. An inventory turnover ratio of 0.00 may suggest that the company is potentially carrying excessive levels of inventory or facing challenges in selling its products quickly.

A low or zero inventory turnover ratio could have implications for Edison International's operational efficiency, liquidity, and profitability. It may lead to increased holding costs, risk of inventory obsolescence, and working capital tied up in unsold inventory. Investors and analysts may view such a situation as a red flag, prompting further investigation into the company's inventory management practices and demand forecasting capabilities.

In conclusion, the consistently low inventory turnover ratio for Edison International over the reported quarters highlights a need for the company to implement strategies to improve inventory management efficiency and optimize working capital utilization.