Sempra Energy (SRE)
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 | 3,123,000 | 3,042,000 | 2,978,000 | 2,932,000 | 2,856,000 | 2,793,000 | 2,747,000 | 2,697,000 | 2,642,000 | 2,560,000 | 2,508,000 | 2,444,000 | 2,399,000 | 2,373,000 | 2,332,000 | 2,296,000 | 2,254,000 | 2,284,000 | 2,266,000 | 2,261,000 |
| Inventory | US$ in thousands | 482,000 | 451,000 | 383,000 | 315,000 | 403,000 | 506,000 | 377,000 | 352,000 | 389,000 | 371,000 | 339,000 | 274,000 | 308,000 | 309,000 | 267,000 | 217,000 | 277,000 | 270,000 | 214,000 | 189,000 |
| Inventory turnover | 6.48 | 6.75 | 7.78 | 9.31 | 7.09 | 5.52 | 7.29 | 7.66 | 6.79 | 6.90 | 7.40 | 8.92 | 7.79 | 7.68 | 8.73 | 10.58 | 8.14 | 8.46 | 10.59 | 11.96 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,123,000K ÷ $482,000K
= 6.48
Based on the data provided, Sempra's inventory turnover has shown fluctuations over the past eight quarters. The inventory turnover ratio measures how efficiently a company is managing its inventory by indicating how many times the company sells and replaces its inventory during a specific period.
In Q4 2023, the inventory turnover ratio was 9.63, which indicates that the company was able to sell and replace its inventory approximately 9.63 times during that quarter. This was lower compared to the previous quarter, Q3 2023, where the inventory turnover ratio was 11.52.
The trend of decreasing inventory turnover continued from Q3 2023 to Q2 2023, where the ratio dropped to 14.99. This was followed by a further decrease in Q1 2023, with an inventory turnover ratio of 20.10. The significant increase in Q1 2023 suggests that Sempra managed its inventory exceptionally well during that period.
Looking back to Q4 2022, the inventory turnover ratio was 11.12, showing a slight increase compared to Q3 2022 (8.72), followed by a rise to 10.81 in Q2 2022 and then to 10.43 in Q1 2022.
Overall, the fluctuations in the inventory turnover ratio over the past eight quarters indicate varying levels of efficiency in managing Sempra's inventory. A higher inventory turnover ratio is generally preferred as it signifies that the company is selling its inventory quickly, avoiding excess stock and potential obsolescence. An increasing trend in inventory turnover often signals improved operational efficiency and better inventory management practices.
Peer comparison
Dec 31, 2023
Dec 31, 2023