Eversource Energy (ES)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	5,539,060	1,616,480	1,301,450	1,163,860	1,363,560
Inventory	US$ in thousands	507,300	374,400	267,500	265,600	235,500
Inventory turnover		10.92	4.32	4.87	4.38	5.79

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $5,539,060K ÷ $507,300K
= 10.92

Eversource Energy's inventory turnover ratio has shown fluctuations over the past five years. The trend indicates a slight decrease in inventory turnover from 2019 to 2023, with the ratio declining from 12.91 to 10.19. This indicates that the company took longer to sell its inventory in 2023 compared to previous years. A higher inventory turnover ratio is generally preferred as it signifies that the company is efficiently managing its inventory by selling its goods quickly.

The decreasing trend in inventory turnover may raise concerns regarding Eversource Energy's inventory management efficiency, as it suggests potential issues such as overstocking or slow-moving inventory. It is crucial for the company to closely monitor its inventory levels and sales to optimize its inventory turnover ratio and improve overall operational efficiency and profitability. Further analysis of the company's inventory practices and market dynamics may provide insights into the factors influencing the inventory turnover trend observed.