Eversource Energy (ES)

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	8,197,200	7,576,510	7,407,340	7,551,490	8,119,160	8,452,920	8,277,970	7,834,940	6,879,410	6,414,240	5,870,020	5,538,530	5,140,430	4,972,360	4,812,530	4,713,487	4,468,087	4,401,667	4,324,697	4,311,424
Inventory	US$ in thousands	594,600	564,189	532,415	555,211	507,300	445,810	405,800	423,343	374,400	322,216	262,421	287,042	267,500	217,286	187,692	308,093	265,600	214,300	176,138	286,498
Inventory turnover		13.79	13.43	13.91	13.60	16.00	18.96	20.40	18.51	18.37	19.91	22.37	19.30	19.22	22.88	25.64	15.30	16.82	20.54	24.55	15.05

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,197,200K ÷ $594,600K
= 13.79

Inventory turnover is a financial ratio that measures how efficiently a company manages its inventory by comparing the cost of goods sold to the average inventory level. A higher inventory turnover ratio indicates that the company is selling its inventory more quickly.

Analyzing the inventory turnover ratio of Eversource Energy over the reported periods, we observe fluctuations in the ratio. The inventory turnover ratio ranged from a low of 13.43 on September 30, 2024, to a high of 25.64 on June 30, 2021. This variability suggests changes in the company's inventory management practices and sales performance during the respective periods.

Overall, Eversource Energy's inventory turnover ratio has shown some stability, with the ratio consistently remaining above 10, indicating efficient management of its inventory. However, the decreasing trend in recent periods, with the ratio declining from 22.37 on June 30, 2022, to 13.79 on December 31, 2024, may warrant further investigation to understand the reasons behind the drop in inventory turnover.

In conclusion, Eversource Energy has maintained a relatively healthy inventory turnover ratio, reflecting effective inventory management. Monitoring the trend of this ratio over time can provide valuable insights into the company's operational efficiency and overall performance.