Nextera Energy Inc (NEE)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,886,000 | 10,138,000 | 10,817,000 | 8,480,000 | 7,290,000 |
| Inventory | US$ in thousands | 2,214,000 | 2,106,000 | 1,934,000 | 1,561,000 | 1,552,000 |
| Inventory turnover | 4.47 | 4.81 | 5.59 | 5.43 | 4.70 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $9,886,000K ÷ $2,214,000K
= 4.47
Nextera Energy Inc's inventory turnover has shown a generally increasing trend from 2020 to 2022, with the ratio rising from 4.70 to 5.59. This indicates that the company's efficiency in managing its inventory and converting it into sales has improved over this period. However, there was a slight decrease in inventory turnover in 2023 and 2024, with the ratio declining to 4.81 and 4.47, respectively.
The fluctuations in inventory turnover may suggest changes in the company's inventory management practices, market demand shifts, or adjustments in production levels. Overall, despite the slight declines in 2023 and 2024, Nextera Energy Inc has maintained a relatively healthy level of inventory turnover, reflecting its ability to effectively control inventory levels and optimize sales performance.
It would be important for the company to continue monitoring its inventory turnover closely to ensure efficient inventory management and to adapt strategies accordingly to maintain a balanced inventory turnover ratio.
Peer comparison
Dec 31, 2024