Nextera Energy Inc (NEE)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,437,000 | 6,937,000 | 6,077,000 | 6,132,000 | 6,383,000 |
| Inventory | US$ in thousands | 2,106,000 | 1,934,000 | 1,561,000 | 1,552,000 | 1,328,000 |
| Inventory turnover | 4.01 | 3.59 | 3.89 | 3.95 | 4.81 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $8,437,000K ÷ $2,106,000K
= 4.01
NextEra Energy Inc's inventory turnover has displayed some fluctuations over the past five years. In 2023, the inventory turnover ratio decreased to 2.59 from 3.30 in 2022, indicating a decrease in the efficiency of inventory management compared to the previous year. Despite the decrease in 2023, the inventory turnover ratio still remains above the levels observed in 2020 and 2019. This suggests that NextEra Energy Inc has been able to effectively manage its inventory turnover performance in recent years, albeit with some variability. Overall, a higher inventory turnover ratio is generally preferred as it signifies a quicker turnover of inventory, which can lead to better cash flow management and lower risk of excess inventory. The varying trends in NextEra Energy Inc's inventory turnover ratio reflect the company's inventory management strategies and demand patterns in the energy industry.
Peer comparison
Dec 31, 2023