Entergy Corporation (ETR)

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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Cost of revenue (ttm)	US$ in thousands	2,884,549	2,953,596	2,918,119	2,730,247	2,730,494	2,549,693	2,521,546	3,011,500	2,933,595	2,954,899	2,955,185	2,582,389	2,619,019	2,791,247	2,774,594	2,847,307	3,026,889	2,960,630	3,370,350	3,729,933
Inventory	US$ in thousands	1,418,970	1,362,100	1,307,740	1,233,490	1,183,310	1,129,480	1,094,560	1,066,540	1,041,520	1,032,260	990,088	972,771	918,962	870,935	837,855	824,989	803,843	787,068	771,707	752,843
Inventory turnover		2.03	2.17	2.23	2.21	2.31	2.26	2.30	2.82	2.82	2.86	2.98	2.65	2.85	3.20	3.31	3.45	3.77	3.76	4.37	4.95

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,884,549K ÷ $1,418,970K
= 2.03

Based on the provided data, Entergy Corp.'s inventory turnover has fluctuated over the past eight quarters. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times the inventory is sold and replaced during a specific period.

In Q4 2023, Entergy Corp.'s inventory turnover was 2.34, which indicates that the company turned over its inventory 2.34 times during that quarter. This was lower compared to the previous quarter, Q3 2023, where the ratio was 2.78. The decreasing trend in inventory turnover may suggest that the company is taking longer to sell its inventory or is carrying excess inventory levels.

However, looking at the historical trend, Entergy Corp.'s inventory turnover has generally been above 3 over the past eight quarters, indicating that the company has been able to efficiently manage its inventory during most periods. The highest inventory turnover was recorded in Q1 2023 at 3.90, showing that the company was able to quickly sell and replace its inventory during that quarter.

Overall, it is important for Entergy Corp. to analyze the reasons behind the fluctuations in inventory turnover to ensure effective inventory management and optimize working capital utilization. Keeping inventory turnover at optimal levels can help the company improve its cash flow, reduce holding costs, and enhance overall operational efficiency.