Alliant Energy Corp (LNT)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,394,000 | 1,375,000 | 1,319,000 | 1,195,000 | 1,192,300 |
| Inventory | US$ in thousands | 343,000 | 325,000 | 246,000 | 217,000 | 227,300 |
| Inventory turnover | 4.06 | 4.23 | 5.36 | 5.51 | 5.25 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,394,000K ÷ $343,000K
= 4.06
Inventory turnover measures how many times a company sells and replaces its inventory during a specific period. In the case of Alliant Energy Corp., the inventory turnover has shown a declining trend over the past five years. The company's inventory turnover ratio decreased from 6.51 in 2019 to 4.72 in 2023.
A decreasing trend in inventory turnover may indicate that the company is holding onto its inventory for a longer period, which could tie up working capital and potentially lead to higher carrying costs. This could be a cause for concern, as it may signify inefficiencies in inventory management or slow-moving inventory.
It is worth noting that while a lower inventory turnover ratio may raise concerns about inventory management efficiency, it is essential to consider the industry norms and business model of the company before drawing any definitive conclusions. Further analysis and comparison with industry peers would provide a more comprehensive understanding of Alliant Energy Corp.'s inventory turnover performance.
Peer comparison
Dec 31, 2023