Portland General Electric Co (POR)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 427,000 | 422,000 | 411,000 | 362,000 | 366,000 |
| Inventory | US$ in thousands | 113,000 | 95,000 | 78,000 | 72,000 | 96,000 |
| Inventory turnover | 3.78 | 4.44 | 5.27 | 5.03 | 3.81 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $427,000K ÷ $113,000K
= 3.78
Inventory turnover measures the efficiency with which Portland General Electric Co manages its inventory levels. It indicates how many times the company's inventory is sold and replaced within a specific period.
Looking at the trend over the past five years, we observe a relatively stable inventory turnover ratio, signaling consistent inventory management practices. The ratios have consistently been above 9, with a peak in 2021 at 10.54 and a low in 2019 at 6.40.
The average inventory turnover ratio over the period was approximately 9.94, showing that on average, Portland General Electric Co sells and replaces its inventory almost 10 times a year. This indicates that the company effectively manages its inventory levels to meet customer demand without excessive stockpiling.
Overall, the consistent and relatively high inventory turnover ratios suggest that Portland General Electric Co efficiently controls its inventory, which can positively impact its cash flow and profitability by minimizing carrying costs and potential obsolescence risks.
Peer comparison
Dec 31, 2023