Sempra Energy (SRE)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,123,000 | 2,856,000 | 2,642,000 | 2,395,000 | 2,254,000 |
| Inventory | US$ in thousands | 482,000 | 403,000 | 389,000 | 308,000 | 277,000 |
| Inventory turnover | 6.48 | 7.09 | 6.79 | 7.78 | 8.14 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,123,000K ÷ $482,000K
= 6.48
The inventory turnover ratio for Sempra has fluctuated over the past five years, with values ranging from 7.75 to 11.12. A higher inventory turnover ratio indicates that the company is selling its inventory more frequently within a given period, which is generally seen as a positive sign of efficiency. In 2022, Sempra achieved the highest inventory turnover ratio of 11.12, signaling that the company was managing its inventory effectively and converting it into sales quickly. The ratio decreased to 9.63 in 2023, indicating a slight decrease in the efficiency of inventory management compared to the previous year but still relatively strong. Overall, Sempra's inventory turnover ratios suggest that the company has been effectively managing its inventory levels in recent years.
Peer comparison
Dec 31, 2023