FirstEnergy Corporation (FE)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	7,158,000	7,187,000	7,283,000	5,753,000	4,646,000	4,880,000	4,877,000	4,835,000	4,593,000	4,202,000	3,890,000	3,624,000	3,445,000	3,289,000	3,150,000	3,114,000	3,070,000	3,201,000	3,254,000	3,304,000
Inventory	US$ in thousands	549,000	536,000	536,000	538,000	512,000	481,000	449,000	457,000	421,000	361,000	304,000	273,000	260,000	245,000	274,000	303,000	317,000	308,000	303,000	285,000
Inventory turnover		13.04	13.41	13.59	10.69	9.07	10.15	10.86	10.58	10.91	11.64	12.80	13.27	13.25	13.42	11.50	10.28	9.68	10.39	10.74	11.59

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,158,000K ÷ $549,000K
= 13.04

The inventory turnover ratio for FirstEnergy Corporation has exhibited fluctuations over the reported periods, indicating changes in the efficiency of managing inventory. The ratio was at its highest at 13.59 for June 30, 2024, showing that the company turned over its inventory approximately 13.6 times during that period. This suggests efficient inventory management practices. However, the ratio decreased to 9.07 for December 31, 2023, indicating a lower turnover rate, which may imply potential issues such as overstocking or slowing sales.

Overall, it is important to monitor the inventory turnover ratio consistently to ensure optimal inventory management, as a high ratio could signify stockouts and lost sales, whereas a low ratio could indicate excess or obsolete inventory.