Ameren Corp (AEE)

Days of inventory on hand (DOH)

		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
Inventory turnover		6.18	6.05	6.31	6.54	6.00	5.91	6.71	7.57	6.92	6.09	6.44	7.06	5.75	5.37	5.85	6.33	5.64	5.36	5.86	6.56
DOH	days	59.09	60.35	57.82	55.79	60.86	61.81	54.39	48.20	52.76	59.97	56.71	51.73	63.50	67.97	62.39	57.63	64.77	68.06	62.25	55.60

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.18
= 59.09

The days of inventory on hand (DOH) for Ameren Corp have shown some fluctuations over the quarters from March 31, 2020, to December 31, 2024. The DOH indicates the average number of days it takes for the company to sell its entire inventory stockpile. A lower DOH generally suggests efficient inventory management, while a higher DOH may indicate slow-moving inventory or potential liquidity issues.

From March 31, 2020, to September 30, 2021, Ameren Corp's DOH increased steadily from 55.60 days to 67.97 days, indicating a longer period to sell off inventory. However, the DOH decreased from March 31, 2022, to March 31, 2024, reaching a low of 48.20 days, suggesting improved efficiency in managing inventory levels.

The decrease in DOH from 2022 to 2024 could imply faster inventory turnover, potentially due to improved demand forecasting, production planning, or effective inventory control measures. This may positively impact cash flow by reducing excess inventory carrying costs and minimizing the risk of obsolescence.

However, it's important to interpret the DOH in conjunction with other financial metrics to gain a comprehensive understanding of Ameren Corp's overall operational efficiency and financial health. A sustained downward trend in DOH could signify effective inventory management practices, contributing to enhanced profitability and liquidity in the long run.