American Electric Power Co Inc (AEP)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 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	Dec 31, 2019
Inventory turnover		2.77	0.51	0.45	0.40	0.52	0.55	0.69	0.79	0.84	0.83	0.88	0.84	0.85	0.68	0.61	0.58	0.64	0.63	0.67	0.66
DOH	days	131.72	719.96	808.61	901.71	701.77	668.40	529.55	462.59	435.69	437.94	414.23	433.34	428.04	534.72	599.41	625.85	569.73	576.06	548.72	555.53

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.77
= 131.72

The days of inventory on hand (DOH) for American Electric Power Co Inc have shown fluctuations over the analyzed period. From December 31, 2019 to December 31, 2020, the DOH increased significantly from 555.53 days to 625.85 days, indicating a potential build-up of inventory. However, there was a decrease in DOH by March 31, 2021 to 599.41 days, and further decreases were observed up to June 30, 2021, where the DOH dropped to 534.72 days.

Subsequently, there was a notable decline in DOH to 428.04 days by September 30, 2021, suggesting improved management of inventory levels. The trend continued with slight fluctuations until December 31, 2022, where the DOH stood at 462.59 days. However, a significant increase was observed by March 31, 2023, with DOH reaching 529.55 days, and further escalating to 901.71 days by December 31, 2023.

The drastic rise in DOH by December 31, 2023 indicates a potential inefficiency in inventory management or a build-up of excess inventory. Subsequently, there was a notable decrease in DOH by December 31, 2024, where it fell to 131.72 days, which may suggest efforts to optimize inventory levels.

Overall, the analysis of American Electric Power Co Inc's DOH reveals varying trends in inventory management over the analyzed period, with fluctuations that may require further investigation to assess the impact on the company's operations and financial performance.