FirstEnergy Corporation (FE)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,376,000 | 4,646,000 | 4,593,000 | 3,445,000 | 3,070,000 |
| Inventory | US$ in thousands | 549,000 | 512,000 | 421,000 | 260,000 | 317,000 |
| Inventory turnover | 7.97 | 9.07 | 10.91 | 13.25 | 9.68 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,376,000K ÷ $549,000K
= 7.97
FirstEnergy Corporation's inventory turnover has exhibited fluctuations over the past five years. The inventory turnover ratio, which measures how many times a company replenishes its inventory in a given period, increased from 9.68 in 2020 to 13.25 in 2021, indicating a more efficient management of inventory levels. However, in 2022, the ratio decreased slightly to 10.91 before further declining to 9.07 in 2023 and 7.97 in 2024.
A lower inventory turnover ratio in the latter years could suggest potential inventory management challenges, such as overstocking or slower sales, which may lead to increased carrying costs and possible obsolescence risk. It is important for FirstEnergy Corporation to closely monitor and optimize its inventory levels to improve operational efficiency and financial performance in the future.
Peer comparison
Dec 31, 2024