PPL Corporation (PPL)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 791,000 | 743,000 | 1,160,000 | 763,000 | 649,000 |
| Inventory | US$ in thousands | 511,000 | 505,000 | 443,000 | 322,000 | 302,000 |
| Inventory turnover | 1.55 | 1.47 | 2.62 | 2.37 | 2.15 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $791,000K ÷ $511,000K
= 1.55
Based on the inventory turnover ratios of PPL Corporation over the past five years, we can observe fluctuations in the efficiency of managing its inventory.
In December 2020, the inventory turnover ratio was 2.15, indicating that the company's inventory turned over approximately 2.15 times during that year. This ratio increased to 2.37 in December 2021, suggesting slightly improved inventory management efficiency. In December 2022, the ratio further increased to 2.62, reflecting a more efficient turnover of inventory.
However, there was a notable decline in inventory turnover in December 2023, with a ratio of 1.47. This decrease indicates a potential issue with inventory management efficiency during that period. The trend continued into December 2024, with a slight increase to 1.55 but still below the levels seen in the previous years.
Overall, PPL Corporation's inventory turnover has shown fluctuations over the years, with periods of improvement and decline. It is important for the company to closely monitor its inventory management practices to ensure optimal efficiency and cost-effectiveness.
Peer comparison
Dec 31, 2024