Allete Inc (ALE)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.41 | 5.12 | 1.30 | 4.30 | 5.35 | |
| DOH | days | 259.44 | 71.34 | 281.32 | 84.87 | 68.29 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.41
= 259.44
Allete Inc's days of inventory on hand (DOH) has exhibited some fluctuations over the years. As of December 31, 2020, the company maintained inventory for approximately 68.29 days, indicating a reasonable turnover rate. However, by the end of December 31, 2021, the DOH increased to 84.87 days, suggesting a potential slowdown in inventory management efficiency.
The following year, on December 31, 2022, Allete Inc experienced a significant spike in its DOH to 281.32 days, signaling a substantial buildup of inventory relative to sales. This prolonged DOH may indicate overstocking or decreased demand, potentially leading to higher storage costs and potential obsolescence risks.
By December 31, 2023, the DOH decreased to 71.34 days, reflecting a positive trend towards better inventory turnover. However, on December 31, 2024, the DOH surged again to 259.44 days, highlighting a potential issue in managing inventory levels efficiently.
Overall, Allete Inc's DOH trend suggests varying levels of effectiveness in managing inventory, with significant fluctuations that may warrant further investigation into inventory control practices and demand forecasting accuracy.
Peer comparison
Dec 31, 2024