Exelon Corporation (EXC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,759,000 | 5,526,000 | 10,684,000 | 9,739,000 | 8,424,000 |
| Inventory | US$ in thousands | 801,000 | 755,000 | 1,869,000 | 1,722,000 | 1,768,000 |
| Inventory turnover | 7.19 | 7.32 | 5.72 | 5.66 | 4.76 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,759,000K ÷ $801,000K
= 7.19
Exelon Corp.'s inventory turnover ratio measures how efficiently the company manages its inventory levels over the past five years. The ratio has shown a generally increasing trend, indicating improvements in inventory management efficiency.
In 2023, Exelon Corp. achieved an inventory turnover ratio of 10.29 times, which means the company sold and replaced its inventory approximately 10.29 times during the year. This is a notable increase from the previous year's ratio of 8.23. The uptrend suggests that Exelon has been more effective in managing its inventory levels, possibly through better demand forecasting, inventory control, or supply chain management.
Comparing the 2023 ratio to those of earlier years, the company maintained a consistently high inventory turnover, with 2021 showing a slight dip at 9.29. This indicates that Exelon has been successful in converting its inventory into sales swiftly and efficiently over the years.
Overall, the increasing trend in Exelon's inventory turnover ratio reflects positively on the company's operational efficiency in managing its inventory, which can lead to cost savings, improved cash flow, and enhanced financial performance.
Peer comparison
Dec 31, 2023