American Electric Power Company Inc (AEP)

The days of inventory on hand (DOH) for American Electric Power Company Inc. have shown variability over the past five years, as evidenced by the following figures: 104.28 days as of December 31, 2023; 66.96 days as of December 31, 2022; 66.05 days as of December 31, 2021; 109.42 days as of December 31, 2020; and 83.58 days as of December 31, 2019.

The company's DOH peaked at 109.42 days in 2020, indicating that on average, the company held inventory for a longer duration before it was sold or used. This could suggest potential inefficiencies in managing inventory levels or challenges in matching supply with demand during that period.

Conversely, the lowest DOH was observed in 2021 and 2022, at 66.05 days and 66.96 days, respectively, reflecting a more efficient utilization of inventory during those years. This could imply improved inventory management practices, potentially leading to lower carrying costs, reduced risk of obsolescence, and better cash flow management.

The recent increase in DOH to 104.28 days in 2023 might raise concerns about the company's inventory management efficiency. Investors and stakeholders may want to further investigate the reasons behind this increase and evaluate whether it is a temporary fluctuation or a trend that warrants attention.

Overall, fluctuations in the DOH ratio for American Electric Power Company Inc. indicate varying levels of efficiency in managing inventory over the years, highlighting the importance of ongoing monitoring and assessment of the company's inventory practices.

Peer comparison

Dec 31, 2023