NRG Energy Inc. (NRG)

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	29,518,000	31,343,000	32,455,000	33,338,000	29,388,000	27,825,000	23,665,000	20,255,000	21,846,000	15,447,000	13,470,000	11,947,000	6,540,000	6,579,000	6,698,000	7,109,000	7,303,000	7,245,000	7,330,000	7,374,000
Inventory	US$ in thousands	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	383,000	364,000	370,000	391,000
Inventory turnover		48.63	49.75	47.31	46.17	39.13	36.04	39.18	57.22	43.87	34.71	36.90	37.81	20.00	19.94	17.26	19.11	19.07	19.90	19.81	18.86

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $29,518,000K ÷ $607,000K
= 48.63

The inventory turnover ratio for NRG Energy Inc. has been relatively stable over the past eight quarters, ranging from a low of 33.26 in Q3 2022 to a high of 52.71 in Q1 2022. Generally, a higher inventory turnover ratio is favorable as it indicates that the company is efficiently managing its inventory levels and generating sales revenue from its inventory.

The latest inventory turnover ratio of 44.11 in Q4 2023 is slightly lower compared to the previous quarter but remains within the range seen over the past two years. This suggests that NRG Energy Inc. maintains a good balance between holding excessive inventory and satisfying customer demand.

Overall, the consistency in the inventory turnover ratio indicates that NRG Energy Inc. has been effective in managing its inventory levels and converting them into sales, which is a positive indicator of the company's operational efficiency.