NRG Energy Inc. (NRG)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	24,027,000	24,857,000	24,039,000	23,569,000	25,862,000	28,988,000	30,369,000	31,294,000	27,446,000	25,605,000	21,495,000	18,565,000	20,499,000	15,128,000	13,470,000	11,947,000	6,540,000	6,579,000	6,698,000	7,109,000
Inventory	US$ in thousands	478,000	540,000	623,000	581,000	607,000	630,000	686,000	722,000	751,000	772,000	604,000	354,000	498,000	445,000	365,000	316,000	327,000	330,000	388,000	372,000
Inventory turnover		50.27	46.03	38.59	40.57	42.61	46.01	44.27	43.34	36.55	33.17	35.59	52.44	41.16	34.00	36.90	37.81	20.00	19.94	17.26	19.11

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $24,027,000K ÷ $478,000K
= 50.27

The inventory turnover ratio for NRG Energy Inc. has shown fluctuations over the periods analyzed. The ratio represents how many times a company's inventory is sold and replaced over a specific period.

From March 31, 2020, to December 31, 2024, the inventory turnover ratio ranged from approximately 17.26 to 52.44 times. Notably, there was a significant increase from March 31, 2022, to March 31, 2024, where the ratio rose from 52.44 to 40.57 before gradually decreasing to 50.27.

A high inventory turnover ratio generally indicates that the company is efficiently managing its inventory levels and converting them into sales. On the other hand, a low ratio may suggest issues with excess inventory or slow sales.

It is crucial for NRG Energy Inc. to monitor its inventory turnover ratio continuously to ensure optimal inventory management practices and operational efficiency. This analysis provides insights into the company's inventory management performance and efficiency over the specified periods.