WEC Energy Group Inc (WEC)

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	5,413,000	5,221,100	5,237,500	4,954,600	5,062,300	5,792,400	5,947,800	6,302,800	6,296,900	6,028,100	5,803,100	5,408,800	5,316,500	5,031,800	4,978,900	4,906,800	4,351,700	4,383,900	4,415,900	4,493,800
Inventory	US$ in thousands	813,200	789,900	695,800	608,600	775,200	749,900	603,700	523,500	807,100	924,600	572,200	368,800	635,800	645,700	452,700	353,500	528,600	573,400	467,700	391,100
Inventory turnover		6.66	6.61	7.53	8.14	6.53	7.72	9.85	12.04	7.80	6.52	10.14	14.67	8.36	7.79	11.00	13.88	8.23	7.65	9.44	11.49

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,413,000K ÷ $813,200K
= 6.66

The inventory turnover ratio for WEC Energy Group Inc fluctuated over the period from March 31, 2020, to December 31, 2024.

The inventory turnover measures how efficiently the company is managing its inventory by showing how many times the company's inventory is sold and replaced during a specific period. A higher inventory turnover ratio generally indicates efficient inventory management.

Based on the data provided, the inventory turnover ratio ranged from a low of 6.52 on September 30, 2022, to a high of 14.67 on March 31, 2022. The ratio peaked again at 12.04 on March 31, 2023, and showed variations throughout the period.

A declining trend in inventory turnover may indicate excess inventory levels or slow-moving inventory, which ties up capital and may lead to increased holding costs or potential obsolescence. On the other hand, a sudden increase in inventory turnover may suggest aggressive sales tactics or potential inventory shortages.

Overall, it is essential for WEC Energy Group Inc to monitor its inventory turnover ratio continuously to ensure optimal inventory management, balance between inventory levels, and sales efficiency.