Nextera Energy Inc (NEE)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	6,188,000	5,783,000	4,528,000	4,463,000	4,488,000	4,204,000	4,104,000	4,053,000	3,866,000	3,863,000	3,836,000	3,795,000	3,873,000	3,876,000	3,975,000	3,978,000	3,908,000	3,881,000	3,737,000	3,687,000
Inventory	US$ in thousands	2,106,000	2,074,000	1,931,000	1,915,000	1,934,000	1,791,000	1,642,000	1,586,000	1,561,000	1,744,000	1,596,000	1,604,000	1,552,000	1,414,000	1,367,000	1,371,000	1,328,000	1,451,000	1,427,000	1,410,000
Inventory turnover		2.94	2.79	2.34	2.33	2.32	2.35	2.50	2.56	2.48	2.22	2.40	2.37	2.50	2.74	2.91	2.90	2.94	2.67	2.62	2.61

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,188,000K ÷ $2,106,000K
= 2.94

NextEra Energy Inc's inventory turnover ratio has shown a fluctuating trend over the past eight quarters. The inventory turnover ratio is a measure of how efficiently a company is managing its inventory by indicating how many times during a period the company sells and replaces its inventory.

In the most recent quarter, Q4 2023, the inventory turnover ratio decreased to 2.59, a decline from the previous quarter's ratio of 2.79 in Q3 2023. Despite the decrease, the ratio remains above 2, indicating that NextEra Energy Inc is turning over its inventory approximately 2.59 times during the quarter.

Looking at the broader trend, the inventory turnover ratio has generally been fluctuating between 3.14 and 3.36 over the past two years. This suggests a relatively consistent performance in efficiently managing inventory levels and converting it into sales. However, the decreasing trend in the most recent quarters could indicate potential issues such as overstocking or lower demand for its products.

Overall, a deeper analysis of the company's inventory management practices and consideration of industry benchmarks would provide further insights into the effectiveness of NextEra Energy Inc's inventory turnover.