NRG Energy Inc. (NRG)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 29,555,000 | 29,429,000 | 22,873,000 | 6,540,000 | 7,303,000 |
| Inventory | US$ in thousands | 607,000 | 751,000 | 498,000 | 327,000 | 383,000 |
| Inventory turnover | 48.69 | 39.19 | 45.93 | 20.00 | 19.07 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $29,555,000K ÷ $607,000K
= 48.69
Inventory turnover is a key financial ratio used to evaluate how efficiently a company manages its inventory. A higher inventory turnover ratio indicates that a company is selling its inventory quickly and efficiently. Looking at the inventory turnover trend for NRG Energy Inc. over the past five years, we observe a generally increasing trend from 19.07 in 2019 to 44.11 in 2023.
This improvement suggests that NRG Energy Inc. has been able to sell its inventory at a faster rate in recent years. The significant increase in inventory turnover from 2019 to 2020, followed by continued improvement in each subsequent year, indicates effective inventory management and optimization of production processes.
A high inventory turnover ratio can also signify strong demand for the company's products or efficient supply chain management. Overall, the improving trend in NRG Energy Inc.'s inventory turnover ratio reflects positively on the company's operational efficiency and its ability to effectively control and sell its inventory.
Peer comparison
Dec 31, 2023