IDACORP Inc (IDA)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	425,082	1,449,520	1,313,870	1,125,840	1,038,560
Inventory	US$ in thousands	244,720	160,467	107,223	95,597	96,587
Inventory turnover		1.74	9.03	12.25	11.78	10.75

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $425,082K ÷ $244,720K
= 1.74

To analyze the inventory turnover of IDACORP Inc over the past five years, we calculate the cost of goods sold divided by average inventory to determine how many times the company has sold and replaced its inventory within a given period.

The inventory turnover ratio for IDACORP Inc has shown fluctuating trends over the last five years. It increased from 10.75 in 2020 to 11.78 in 2021, indicating an improvement in the efficiency of managing inventory. In 2022, the ratio further increased to 12.25, suggesting an enhanced ability to turn inventory into sales.

However, in 2023, the inventory turnover ratio decreased significantly to 9.03, signaling a potential inefficiency in managing inventory levels or an increase in excess inventory sitting idle. Moreover, in 2024, the ratio plummeted to 1.74, which could signify challenges in managing inventory effectively or a slowdown in sales.

The substantial decline in inventory turnover in 2024 may raise concerns about inventory management practices, as a low ratio could indicate excess inventory, potential obsolescence, or difficulties in converting inventory into sales efficiently. It would be advisable for IDACORP Inc to conduct a detailed analysis of its inventory management processes and identify areas for improvement to enhance operational efficiency and profitability.