Evergy, Inc. (EVRG)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	961,900	3,819,200	3,229,500	2,954,900	2,525,200
Inventory	US$ in thousands	867,400	776,200	672,900	566,700	504,500
Inventory turnover		1.11	4.92	4.80	5.21	5.01

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $961,900K ÷ $867,400K
= 1.11

Evergy, Inc.'s inventory turnover has exhibited some fluctuations over the past five years. In 2020, the inventory turnover ratio stood at 5.01 times, indicating that the company turned over its inventory approximately five times during that year. This ratio increased slightly to 5.21 times by the end of 2021, suggesting a potentially more efficient management of inventory.

However, in 2022, the inventory turnover ratio decreased to 4.80 times, indicating a slight slowdown in the rate at which Evergy was able to sell its inventory. This trend continued into 2023, with the ratio standing at 4.92 times.

Notably, there was a significant drop in the inventory turnover ratio in 2024, plummeting to 1.11 times. This sharp decline suggests that Evergy may have experienced challenges in managing its inventory effectively during that period, possibly leading to excess or obsolete inventory.

Overall, while the inventory turnover ratios have shown some variability, it is important for Evergy to closely monitor and manage its inventory levels to ensure optimal turnover rates and avoid potential inefficiencies in inventory management.