OGE Energy Corporation (OGE)

Inventory turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 1,738,200 1,567,300 2,235,100 2,647,000 1,917,800
Inventory US$ in thousands 148,300 158,500 108,800 40,600 36,500
Inventory turnover 11.72 9.89 20.54 65.20 52.54

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,738,200K ÷ $148,300K
= 11.72

OGE Energy Corporation's inventory turnover has shown significant fluctuations in recent years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company sells and replaces its inventory during a specific period.

Looking at the data provided, we can see that in December 31, 2020, the inventory turnover ratio was 52.54, which indicates that OGE Energy Corporation was turning over its inventory more than once each week. This suggests strong inventory management and efficient sales processes during that period.

The ratio increased further to 65.20 in December 31, 2021, reflecting an even higher rate of inventory turnover. This could imply improved operational efficiency and effective inventory management practices.

However, there was a significant drop in the inventory turnover ratio to 20.54 in December 31, 2022, followed by a further decline to 9.89 in December 31, 2023. These sharp declines may indicate potential issues such as excess inventory levels, slowing sales, or supply chain disruptions during these periods.

Subsequently, there was a slight improvement in the inventory turnover ratio to 11.72 in December 31, 2024, although it remained significantly lower than the levels observed in the earlier years.

Overall, the fluctuations in OGE Energy Corporation's inventory turnover ratios suggest varying levels of efficiency in managing inventory and sales processes over the years. It would be important for the company to closely monitor its inventory levels and implement strategies to optimize inventory turnover going forward.