WEC Energy Group Inc (WEC)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	3,551,100	4,785,200	3,570,900	2,549,000	2,921,600
Inventory	US$ in thousands	1,095,200	1,064,100	861,100	746,700	784,000
Inventory turnover		3.24	4.50	4.15	3.41	3.73

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,551,100K ÷ $1,095,200K
= 3.24

The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times a company sells and replaces its inventory within a specific period. In the case of WEC Energy Group Inc:

- The inventory turnover has been relatively stable over the past five years, ranging from 4.12 to 5.40.
- A higher inventory turnover ratio indicates that the company is selling and restocking its inventory more frequently, which could be a sign of efficient inventory management.
- A decreasing trend in inventory turnover could suggest potential issues such as overstocking or slow-moving inventory.
- On the other hand, a significantly increasing trend could imply potential inventory shortages or difficulties in meeting customer demand.

In conclusion, WEC Energy Group Inc has maintained a fairly steady level of inventory turnover over the years, indicating a consistent approach to managing its inventory to support its operations. Further analysis would be needed to understand the specific factors driving the fluctuations in the turnover ratio and to assess the effectiveness of the company's inventory management strategies.