Atlas Energy Solutions Inc. (AESI)

Days of inventory on hand (DOH)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024
Inventory turnover 49.04 44.85 28.49
DOH days 7.44 8.14 12.81

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 49.04
= 7.44

Days of Inventory on Hand (DOH) is a crucial ratio that measures how efficiently a company manages its inventory by indicating the number of days it takes to sell its inventory. Analyzing Atlas Energy Solutions Inc.'s DOH for the periods presented:

1. June 30, 2024: The company had 12.81 days of inventory on hand. This suggests that it took approximately 12.81 days for Atlas Energy Solutions Inc. to sell its inventory during this period.

2. September 30, 2024: The DOH decreased significantly to 8.14 days. This indicates an improvement in inventory management efficiency compared to the previous period.

3. December 31, 2024: The DOH further decreased to 7.44 days, showcasing continued improvement in inventory turnover efficiency for Atlas Energy Solutions Inc.

Overall, the trend of decreasing DOH from June 30, 2024, to December 31, 2024, reflects a positive development in the company's inventory management. Lower DOH values suggest that Atlas Energy Solutions Inc. is selling its inventory more quickly, potentially leading to reduced carrying costs, better cash flow management, and increased profitability. This trend indicates that the company is effectively managing its inventory levels to meet demand, which is a key factor in sustaining its operations and profitability.