OGE Energy Corporation (OGE)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,567,300	2,235,100	2,647,000	1,917,800	1,236,500
Inventory	US$ in thousands	158,500	108,800	40,600	36,500	46,300
Inventory turnover		9.89	20.54	65.20	52.54	26.71

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,567,300K ÷ $158,500K
= 9.89

Oge Energy Corp.'s inventory turnover has exhibited significant fluctuation over the past five years. The inventory turnover ratio reflects the number of times a company sells and replaces its inventory during a certain period. A low inventory turnover may indicate overstocking or obsolete inventory, leading to potential financial inefficiencies. In contrast, a high inventory turnover suggests effective inventory management and timely sales.

In 2023, Oge Energy Corp.'s inventory turnover stood at 2.21, representing a decrease from the previous year's ratio of 5.75. This decline may signal potential challenges in managing inventory levels efficiently, possibly resulting in excess inventory or sales slowdown. Additionally, the 2023 ratio is considerably lower compared to the ratios observed in 2021 and 2019.

However, despite the drop in 2023, the inventory turnover for Oge Energy Corp. has displayed a pattern of fluctuation over the past five years. The company achieved its highest inventory turnover in 2021, with a ratio of 13.42, showcasing efficient inventory management and rapid product turnover during that period. On the contrary, the inventory turnover ratios for 2020 and 2019 were relatively similar at 4.22 and 5.75, respectively.

Overall, the varying inventory turnover ratios of Oge Energy Corp. highlight the importance of closely monitoring and managing inventory levels to ensure optimal efficiency and financial performance.