Southern Company (SO)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	1,891,000	1,223,000	1,235,000	1,244,000	1,222,000	1,561,000	1,521,000	1,717,000	2,274,000	1,603,000	1,667,000	1,568,000	1,410,000	2,074,000	2,121,000	2,012,000	1,577,000	1,739,000	1,681,000	1,910,000
Inventory	US$ in thousands	3,352,000	3,148,000	2,963,000	2,750,000	2,677,000	2,681,000	2,281,000	2,103,000	2,355,000	2,258,000	2,122,000	2,195,000	2,488,000	2,476,000	2,381,000	2,215,000	2,388,000	2,324,000	2,143,000	2,093,000
Inventory turnover		0.56	0.39	0.42	0.45	0.46	0.58	0.67	0.82	0.97	0.71	0.79	0.71	0.57	0.84	0.89	0.91	0.66	0.75	0.78	0.91

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,891,000K ÷ $3,352,000K
= 0.56

The inventory turnover for Southern Company has exhibited variability over the past eight quarters, ranging from a low of 2.22 in Q4 2023 to a high of 4.42 in Q4 2022.

A decreasing trend in inventory turnover may suggest inefficiencies in managing inventory levels or slower sales turnover. Conversely, an increasing trend in inventory turnover may indicate better inventory management and efficient sales practices.

In the most recent quarter, Q4 2023, the inventory turnover of 2.22 indicates that the company turned over its inventory approximately 2.22 times during the period. This figure is lower compared to previous quarters, suggesting a potential slowdown in sales relative to inventory levels.

Furthermore, it would be prudent to compare Southern Company's inventory turnover with industry benchmarks to assess its performance in managing inventory effectively. Overall, monitoring inventory turnover trends can provide insights into a company's operational efficiency, sales performance, and inventory management practices.