NRG Energy Inc. (NRG)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 22,100,000 | 26,526,000 | 27,446,000 | 20,482,000 | 6,540,000 |
| Inventory | US$ in thousands | 478,000 | 607,000 | 751,000 | 498,000 | 327,000 |
| Inventory turnover | 46.23 | 43.70 | 36.55 | 41.13 | 20.00 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $22,100,000K ÷ $478,000K
= 46.23
The inventory turnover ratio for NRG Energy Inc. has shown a positive trend over the years, indicating an improvement in the efficiency of managing its inventory. The ratio increased from 20.00 in December 31, 2020, to 46.23 in December 31, 2024. This signifies that the company is selling its inventory more frequently each year, which is a positive sign of effective inventory management.
A higher inventory turnover ratio suggests that NRG Energy Inc. is efficiently managing its inventory levels, minimizing excess stock, and potentially reducing storage and holding costs. This could indicate that the company is responding well to changes in demand, optimizing its production processes, or streamlining its supply chain operations.
Overall, the increasing trend in NRG Energy Inc.'s inventory turnover ratio reflects positively on the company's ability to convert its inventory into sales efficiently, which is essential for maintaining healthy cash flows and profitability levels.
Peer comparison
Dec 31, 2024