Allete Inc (ALE)

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		1.38	3.41	3.00	3.87	5.10	5.09	4.76	2.25	1.29	0.98	1.23	2.12	4.25	4.48	4.53	5.35	5.27	1.84	1.66	1.71
DOH	days	263.81	107.17	121.51	94.34	71.61	71.77	76.64	162.08	283.34	370.65	295.89	172.54	85.87	81.56	80.61	68.22	69.32	198.13	219.59	213.28

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.38
= 263.81

The days of inventory on hand (DOH) for Allete Inc experienced fluctuations over the period from March 31, 2020, to December 31, 2024. The DOH measure indicates the average number of days a company holds its inventory before selling it.

The DOH for Allete Inc increased from 213.28 days on March 31, 2020, to a peak of 370.65 days on September 30, 2022, which suggests that the company was holding inventory for a longer period before selling it. This may indicate potential issues such as overstocking, obsolescence, or slowing sales.

However, the DOH saw a significant decline in the following quarters, dropping to 71.61 days on December 31, 2023. This drastic reduction could signify improved inventory management practices such as better demand forecasting, efficient supply chain management, or clearance of excess inventory.

The DOH continued to fluctuate over the next quarters, reaching 263.81 days on December 31, 2024. Such fluctuations could potentially indicate operational challenges or changes in the company's inventory management strategies.

Overall, the trend in Allete Inc's DOH suggests varying levels of efficiency in inventory management over the period, with periods of high and low DOH values indicating potential areas for improvement or successful optimization efforts. Analysis of the reasons behind these fluctuations would be necessary to assess the impact on the company's operational performance and financial health.