Entergy Corporation (ETR)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2019	Dec 31, 2018
Cost of revenue	US$ in thousands	2,877,350	3,020,130	2,921,940	2,847,700	3,050,720
Inventory	US$ in thousands	1,418,970	1,183,310	1,041,520	824,989	752,843
Inventory turnover		2.03	2.55	2.81	3.45	4.05

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,877,350K ÷ $1,418,970K
= 2.03

The inventory turnover ratio for Entergy Corp. has exhibited fluctuations over the past five years. The ratio indicates how efficiently the company is managing its inventory levels. A higher inventory turnover is generally favorable as it suggests that the company is selling its inventory quickly.

In 2023, the inventory turnover ratio decreased to 2.34 from 3.98 in 2022, signaling a decline in the efficiency of inventory management. This decrease may raise concerns about the company's ability to sell its inventory effectively.

Comparing the inventory turnover ratio in 2023 to the previous years, it is lower than the ratios recorded in 2022 and 2021 but higher than the ratio in 2020. This suggests a mixed trend in inventory management efficiency over the past few years.

Overall, Entergy Corp. should closely monitor and potentially optimize its inventory management processes to improve inventory turnover and ensure the efficient utilization of its resources.