Southern Company (SO)
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 | 15,737,000 | 15,614,000 | 15,519,000 | 14,358,000 | 13,546,000 | 15,177,000 | 16,952,000 | 18,193,000 | 18,459,000 | 17,228,000 | 15,395,000 | 13,985,000 | 13,054,000 | 12,134,000 | 11,558,000 | 10,963,000 | 10,478,000 | 10,612,000 | 10,831,000 | 11,295,000 |
| Inventory | US$ in thousands | 3,369,000 | 3,385,000 | 3,287,000 | 3,268,000 | 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 |
| Inventory turnover | 4.67 | 4.61 | 4.72 | 4.39 | 4.04 | 4.82 | 5.72 | 6.62 | 6.90 | 6.43 | 6.75 | 6.65 | 5.54 | 5.37 | 5.45 | 4.99 | 4.21 | 4.29 | 4.55 | 5.10 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $15,737,000K ÷ $3,369,000K
= 4.67
The inventory turnover ratio for Southern Company has shown some fluctuations over the past few years. It measures the company's efficiency in managing its inventory by assessing how many times it sells and replaces its inventory during a specific period.
From the data provided:
- The inventory turnover ratio increased from 5.10 on March 31, 2020, to 6.90 on December 31, 2022, showing an improvement in inventory management efficiency.
- The ratio peaked at 6.90 on December 31, 2022, indicating that Southern Company was able to sell and replace its inventory almost seven times during that period.
- However, there were fluctuations in the inventory turnover ratio in subsequent periods, with a decrease to 4.04 on December 31, 2023, and then an increase to 4.67 on December 31, 2024.
- Overall, the inventory turnover ratio trended upwards from 5.10 on March 31, 2020, to 4.67 on December 31, 2024, which suggests that the company has become more efficient in managing its inventory over the years.
It's important for Southern Company to maintain a balance in its inventory turnover ratio to ensure it is neither overstocked nor understocked, optimizing its working capital and operational efficiency. Monitoring and analyzing this ratio can help the company make informed decisions regarding inventory management and supply chain operations.
Peer comparison
Dec 31, 2024
Dec 31, 2024