PPL Corporation (PPL)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 787,000 | 769,000 | 761,000 | 747,000 | 739,000 | 806,000 | 874,000 | 1,010,000 | 1,023,000 | 969,000 | 897,000 | 790,000 | 755,000 | 730,000 | 712,000 | 654,000 | 640,000 | 641,000 | 658,000 | 688,000 |
| Inventory | US$ in thousands | 511,000 | 517,000 | 502,000 | 477,000 | 505,000 | 488,000 | 474,000 | 434,000 | 443,000 | 422,000 | 332,000 | 280,000 | 322,000 | 304,000 | 265,000 | 260,000 | 302,000 | 351,000 | 333,000 | 320,000 |
| Inventory turnover | 1.54 | 1.49 | 1.52 | 1.57 | 1.46 | 1.65 | 1.84 | 2.33 | 2.31 | 2.30 | 2.70 | 2.82 | 2.34 | 2.40 | 2.69 | 2.52 | 2.12 | 1.83 | 1.98 | 2.15 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $787,000K ÷ $511,000K
= 1.54
The inventory turnover ratio of PPL Corporation has fluctuated over the past few years, indicating changes in the efficiency of managing its inventory. The ratio provides insight into how many times during a specific period the company has sold and replaced its inventory.
From March 31, 2020, to June 30, 2022, the inventory turnover ratio showed an increasing trend, reaching a peak of 2.82 on March 31, 2022. This suggests that PPL Corporation was able to sell and replace its inventory at a faster pace during this period, potentially indicating good inventory management practices and sales performance.
However, from June 30, 2022, to December 31, 2024, the inventory turnover ratio started to decline gradually. It dropped to 1.49 on September 30, 2024, indicating a potential slowdown in inventory turnover. A decreasing inventory turnover ratio could signal excess inventory, slow sales, or inefficiencies in inventory management.
Overall, it is essential for PPL Corporation to monitor its inventory turnover ratio closely to ensure optimal inventory management practices and efficient operation of its business. Further analysis and comparison with industry benchmarks can provide valuable insights into the company's performance in this area.
Peer comparison
Dec 31, 2024
Dec 31, 2024