Public Service Enterprise Group Inc (PEG)

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	4,684,000	4,829,000	4,602,000	4,688,000	4,854,000	7,633,000	7,506,000	7,090,000	6,575,000	3,431,000	3,083,000	3,092,000	2,979,000	2,959,000	2,944,000	3,082,000	3,353,000	3,441,000	3,547,000	3,756,000
Inventory	US$ in thousands	759,000	686,000	645,000	592,000	540,000	505,000	484,000	471,000	448,000	449,000	612,000	609,000	601,000	608,000	597,000	595,000	587,000	579,000	574,000	584,000
Inventory turnover		6.17	7.04	7.13	7.92	8.99	15.11	15.51	15.05	14.68	7.64	5.04	5.08	4.96	4.87	4.93	5.18	5.71	5.94	6.18	6.43

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,684,000K ÷ $759,000K
= 6.17

Public Service Enterprise Group Inc. has shown a fluctuating trend in inventory turnover over the past eight quarters. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times a company sells and replaces its inventory within a specific period.

In Q1 2023, the inventory turnover ratio was 5.39, indicating that the company sold and replaced its inventory 5.39 times during that quarter. This was an increase from the previous quarter, Q4 2022, where the ratio was 4.19. The increase in inventory turnover from Q4 2022 to Q1 2023 suggests that the company improved its efficiency in managing inventory levels and making sales.

However, in subsequent quarters, there was a downward trend in inventory turnover. In Q2 2023, the ratio decreased to 4.37, followed by further decreases in Q3 2023 (3.62) and Q4 2023 (3.19). These decreasing ratios may suggest potential issues with inventory management, such as overstocking, slow-moving inventory, or challenges in matching inventory levels with sales demand.

Comparing the current inventory turnover ratios to those from the previous year, it is evident that the company's inventory turnover has generally been lower in 2023 compared to 2022. This could indicate a need for the company to reassess its inventory management practices and strategies to improve efficiency and optimize working capital.

In conclusion, while there have been fluctuations in Public Service Enterprise Group Inc.'s inventory turnover ratios over the past year, the overall trend suggests a potential decline in inventory efficiency. Further analysis of the company's inventory management processes and strategies may be necessary to address any underlying issues impacting inventory turnover.