Allete Inc (ALE)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.12 | 1.30 | 4.30 | 5.35 | 2.18 | |
| DOH | days | 71.34 | 281.32 | 84.87 | 68.29 | 167.44 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.12
= 71.34
Allete, Inc.'s days of inventory on hand (DOH) have fluctuated significantly over the past five years. In 2023, the DOH decreased to 66.94 days from a high of 228.48 days in 2022. This substantial reduction indicates a more efficient management of inventory levels, potentially through better inventory control or improved forecasting.
Comparing to the previous years, the DOH in 2023 is closer to the levels seen in 2021 and 2019, which were 56.50 days and 56.38 days, respectively. This suggests that Allete, Inc. has made efforts to optimize its inventory turnover and management practices.
It is essential for the company to continue monitoring and managing its inventory effectively to maintain this improved DOH ratio. A lower DOH indicates that inventory is being sold or used more quickly, which can lead to cost savings, improved cash flow, and better overall financial performance.
Peer comparison
Dec 31, 2023