Xcel Energy Inc (XEL)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,293,000 | 8,272,000 | 9,450,000 | 8,173,000 | 6,562,000 |
| Inventory | US$ in thousands | 666,000 | 711,000 | 803,000 | 631,000 | 535,000 |
| Inventory turnover | 10.95 | 11.63 | 11.77 | 12.95 | 12.27 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $7,293,000K ÷ $666,000K
= 10.95
Based on the provided data, Xcel Energy Inc's inventory turnover has exhibited relatively stable performance over the past five years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times in a year the inventory is sold and replaced.
Starting at 12.27 in December 31, 2020, the inventory turnover increased slightly to 12.95 in December 31, 2021, suggesting an improvement in the efficiency of inventory management. However, in the following years, there was a slight decline in the inventory turnover ratio, reaching 10.95 as of December 31, 2024.
The decreasing trend in inventory turnover could imply that Xcel Energy Inc may be holding onto its inventory for longer periods, which could tie up capital and increase storage costs. It is important for the company to monitor and manage its inventory levels effectively to ensure optimal balance between stock levels and operational efficiency. Additional analysis and comparisons with industry peers may provide further insights into Xcel Energy Inc's inventory management performance.
Peer comparison
Dec 31, 2024