IDACORP Inc (IDA)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,176	1,106	1,021	8,469	43,947
Inventory	US$ in thousands	160,467	107,223	95,597	96,587	114,108
Inventory turnover		0.01	0.01	0.01	0.09	0.39

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,176K ÷ $160,467K
= 0.01

The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times a company sells and replaces its inventory during a specific period. A higher turnover ratio is generally considered favorable as it suggests that inventory is being sold quickly, preventing excess stock and potentially reducing holding costs.

Analyzing Idacorp, Inc.'s inventory turnover over the past five years reveals fluctuations in the efficiency of inventory management. In 2023, the inventory turnover ratio decreased to 3.13 from 5.08 in 2022, indicating a potential decrease in the pace at which inventory is being sold and replaced. However, despite the decrease, the turnover ratio remains relatively healthy.

Comparing the 2023 ratio of 3.13 to the ratios of 4.12 in 2021, 3.08 in 2020, and 2.50 in 2019, it is evident that Idacorp has shown an overall improvement in its inventory turnover performance. This trend suggests that the company has been progressively more efficient in managing its inventory over the past five years.

Overall, while there was a slight decline in the inventory turnover ratio in 2023, Idacorp, Inc. has demonstrated an improvement in inventory management efficiency compared to previous years. Continued monitoring of the inventory turnover ratio will be important to ensure optimal inventory management practices and cost-effectiveness within the company.