WEC Energy Group Inc (WEC)

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	3,551,100	4,108,300	4,324,000	4,720,300	4,785,200	4,361,000	4,108,000	3,694,300	3,570,900	3,239,800	3,165,700	3,082,600	2,549,000	2,602,800	2,601,100	2,650,100	2,920,500	3,087,600	3,127,300	3,181,300
Inventory	US$ in thousands	1,095,200	1,051,600	887,400	800,100	1,064,100	1,175,200	814,900	601,000	861,100	874,700	671,600	571,800	746,700	820,700	707,900	621,800	784,000	830,000	697,400	560,800
Inventory turnover		3.24	3.91	4.87	5.90	4.50	3.71	5.04	6.15	4.15	3.70	4.71	5.39	3.41	3.17	3.67	4.26	3.73	3.72	4.48	5.67

December 31, 2023 calculation

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

The inventory turnover of WEC Energy Group Inc has been fluctuating over the past eight quarters, ranging from a low of 4.12 in Q4 2023 to a high of 9.30 in Q1 2022. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating the number of times inventory is sold and replaced within a given period.

A higher inventory turnover ratio generally indicates that the company is selling its inventory quickly and efficiently, while a lower ratio may suggest issues such as overstocking or slow sales. In this case, the trend shows an overall decreasing pattern from Q1 2022 to Q4 2023, with the ratio decreasing from 9.30 to 4.12.

The significant decrease in inventory turnover may indicate that WEC Energy Group Inc is facing challenges in managing its inventory efficiently. Further analysis is recommended to understand the reasons behind the decrease and to identify potential strategies for improvement.