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.
Peer comparison
Dec 31, 2024