Sempra Energy (SRE)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,363,000 | 3,123,000 | 2,856,000 | 2,642,000 | 2,395,000 |
| Inventory | US$ in thousands | 559,000 | 482,000 | 403,000 | 389,000 | 308,000 |
| Inventory turnover | 6.02 | 6.48 | 7.09 | 6.79 | 7.78 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,363,000K ÷ $559,000K
= 6.02
To analyze the inventory turnover of Sempra Energy, we look at how efficiently the company is managing its inventory. The inventory turnover ratio indicates the number of times a company sells and replaces its inventory during a specific period.
Based on the provided data:
- In December 2020, the inventory turnover ratio was 7.78 times, showing that Sempra Energy effectively turned over its inventory almost 8 times during that year.
- The ratio decreased to 6.79 times by December 2021, suggesting a slight decrease in efficiency in managing inventory.
- For December 2022, the inventory turnover improved to 7.09 times, indicating better efficiency in inventory management compared to the previous year.
- By December 2023, the ratio dropped to 6.48 times, reflecting a decrease in the pace of inventory turnover.
- In December 2024, the inventory turnover ratio further decreased to 6.02 times, indicating a continued trend of slower inventory turnover.
Overall, Sempra Energy's inventory turnover exhibited some fluctuations over the years, with some years showing improved efficiency in managing inventory while others experienced a decline. It is important for the company to monitor its inventory turnover to ensure optimal management of its inventory levels and avoid potential issues such as obsolete inventory or overstocking.