Quanta Services Inc (PWR)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 19,794,200 | 16,251,400 | 12,355,100 | 10,603,100 | 11,545,300 |
| Inventory | US$ in thousands | 175,658 | 103,265 | 84,659 | 50,472 | 55,719 |
| Inventory turnover | 112.69 | 157.38 | 145.94 | 210.08 | 207.21 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $19,794,200K ÷ $175,658K
= 112.69
Quanta Services, Inc.'s inventory turnover has displayed fluctuating trends over the past five years. The inventory turnover ratio in 2023 stood at 102.16, indicating that the company turned over its inventory approximately 102 times during the year. This represents a decline compared to the previous two years when the ratios were notably higher at 140.85 in 2022 and 130.25 in 2021.
Furthermore, the inventory turnover in 2020 and 2019 was significantly higher at 189.05 and 188.66, respectively. These figures suggest that Quanta Services managed its inventory more efficiently in those years, turning over its inventory close to 190 times.
The decreasing trend in inventory turnover from 2020 to 2023 may signal a reduction in sales relative to the level of inventory held by the company. It could also indicate potential issues such as excess inventory levels, slower-moving stock, or challenges in managing inventory effectively.
Overall, while the company's current inventory turnover ratio is relatively high, the downward trend over the past three years may warrant further investigation into Quanta Services, Inc.'s inventory management practices and operational efficiency.
Peer comparison
Dec 31, 2023