The AES Corporation (AES)
Days of inventory on hand (DOH)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 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 | 16.10 | 16.05 | 16.51 | 14.06 | |
| DOH | days | 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 | 22.67 | 22.74 | 22.11 | 25.95 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.28
= 25.57
To analyze AES Corp.'s Days of Inventory on Hand (DOH) over time, we observe a declining trend in DOH from Q4 2022 to Q1 2023, suggesting an improvement in inventory management efficiency. The company was able to reduce the number of days it takes to sell its inventory, indicating better control over inventory levels.
However, in Q2 2023, the DOH increased slightly to 27.15 days, but this was followed by a further increase in Q3 2023 to 28.59 days. This uptrend may indicate a build-up of inventory levels relative to sales, which could potentially lead to increased holding costs and obsolete inventory risks.
In Q4 2023, the DOH decreased to 25.57 days, showing a positive move towards more efficient inventory management compared to the previous quarter. It would be essential for AES Corp. to closely monitor and optimize inventory levels to ensure they align with sales demand and do not lead to excess costs or operational inefficiencies.
Overall, while the fluctuations in DOH indicate some variability in inventory management practices for AES Corp., the company's recent reduction in DOH is a positive sign of improving efficiency and effectiveness in managing its inventory levels.