Evergy Inc. Common Stock (EVRG)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,559,600	1,390,600	1,335,900	1,296,700	1,269,800
Inventory	US$ in thousands	776,200	672,900	566,700	504,500	481,600
Inventory turnover		2.01	2.07	2.36	2.57	2.64

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,559,600K ÷ $776,200K
= 2.01

Looking at the inventory turnover of Evergy Inc over the past five years, we can see fluctuations in the efficiency of managing inventory. The inventory turnover ratio has decreased from 2.63 in 2019 to 1.93 in 2023. This suggests that Evergy Inc took longer to sell its inventory in 2023 compared to previous years.

A lower inventory turnover ratio may indicate excess inventory levels, slow-moving inventory, or potentially inefficiencies in the company's supply chain management. Evergy Inc should closely monitor its inventory levels and adjust its procurement and sales strategies to optimize inventory turnover and improve cash flow efficiency.