PPL Corporation (PPL)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	743,000	1,160,000	763,000	649,000	728,000
Inventory	US$ in thousands	505,000	443,000	322,000	302,000	332,000
Inventory turnover		1.47	2.62	2.37	2.15	2.19

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $743,000K ÷ $505,000K
= 1.47

PPL Corp's inventory turnover has shown fluctuations over the past five years. The inventory turnover ratio indicates how efficiently the company manages its inventory by selling and replacing goods over a specific period. In 2023, the inventory turnover ratio was 5.10, which decreased compared to the previous year but was higher than in 2021. This implies that PPL Corp sold and replaced its inventory 5.10 times during the year.

Overall, the trend shows an improvement in inventory turnover performance from 2019 to 2022, with a peak in 2022 at 5.91. However, there was a slight decline in 2023. A higher inventory turnover ratio generally indicates more efficient inventory management and faster sales cycles. PPL Corp's inventory turnover ratios indicate a generally healthy efficiency in managing its inventory levels and selling its products.