The AES Corporation (AES)
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 | 16.80 | 15.32 | 14.89 | 15.63 | 14.28 | 12.77 | 13.44 | 12.03 | 9.54 | 9.80 | 10.70 | 12.76 | 13.96 | 13.64 | 16.60 | 15.93 | 15.11 | 15.16 | 14.52 | 16.50 | |
| DOH | days | 21.72 | 23.83 | 24.51 | 23.36 | 25.57 | 28.59 | 27.15 | 30.35 | 38.24 | 37.23 | 34.10 | 28.60 | 26.15 | 26.75 | 21.99 | 22.91 | 24.15 | 24.08 | 25.13 | 22.12 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 16.80
= 21.72
The Days of Inventory on Hand (DOH) is a metric used to evaluate how efficiently a company manages its inventory by indicating how many days it typically takes to sell its current inventory. Analyzing the DOH trend of The AES Corporation reveals fluctuating levels over the specified period.
From March 31, 2020, to December 31, 2021, The AES Corporation's DOH ranged between 21.99 days and 26.75 days, showing relatively stable inventory management during this time. However, starting from March 31, 2022, the DOH increased significantly to 38.24 days by December 31, 2022, indicating potential inefficiency in inventory turnover.
The subsequent quarters from March 31, 2023, to December 31, 2024, saw a gradual decline in the DOH, dropping to as low as 21.72 days by the end of December 2024. This decrease suggests that The AES Corporation may have improved its inventory management practices and is now able to sell its inventory more quickly.
Overall, a lower DOH is generally preferred as it indicates a more efficient use of inventory. The recent decline in DOH for The AES Corporation is a positive sign, reflecting improved inventory turnover efficiency. However, ongoing monitoring of inventory management practices may be necessary to sustain these improvements and optimize operational performance.