Sempra Energy (SRE)
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 | 3,363,000 | 3,289,000 | 3,232,000 | 3,170,000 | 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 |
| Inventory | US$ in thousands | 559,000 | 519,000 | 467,000 | 458,000 | 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 |
| Inventory turnover | 6.02 | 6.34 | 6.92 | 6.92 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,363,000K ÷ $559,000K
= 6.02
Inventory turnover is a key financial ratio that measures how effectively a company is managing its inventory. In the case of Sempra Energy, the inventory turnover ratio has fluctuated over the past several quarters.
The inventory turnover ratio for Sempra Energy ranged from a high of 10.58 on March 31, 2020, to a low of 5.52 on September 30, 2022. This indicates that Sempra Energy has been able to sell and replace its inventory multiple times during the high periods and less frequently during the low periods.
A higher inventory turnover ratio is generally seen as positive as it suggests that inventory is being managed efficiently and the company is selling its products quickly. On the other hand, a lower ratio may indicate overstocking or slow-moving inventory.
It is important for Sempra Energy to monitor its inventory turnover ratio consistently to ensure optimal inventory management and efficiency in its operations. Additionally, analyzing the reasons behind fluctuations in the ratio can provide insights into the company's operations and potential areas for improvement.
Peer comparison
Dec 31, 2024
Dec 31, 2024