Allete Inc (ALE)

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		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	2.07	3.04	3.62	4.14
DOH	days	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	176.44	120.01	100.75	88.09

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.10
= 71.61

The days of inventory on hand (DOH) for Allete, Inc. have fluctuated over the past eight quarters. In Q4 2023, the company had 66.94 days of inventory on hand, compared to 65.71 days in Q3 2023, showing a slight increase. However, in Q2 2023, the DOH increased significantly to 69.61 days, before more than doubling to 140.22 days in Q1 2023.

Looking back further, the DOH was even higher in Q4 2022 at 228.48 days, and still elevated at 243.33 days in Q3 2022. The trend then shifted downwards, with a decrease to 188.65 days in Q2 2022, and a further drop to 110.67 days in Q1 2022.

This analysis suggests that Allete, Inc. has experienced fluctuations in their inventory management efficiency in recent quarters, with periods of both increasing and decreasing DOH. It would be important for stakeholders to closely monitor and assess the company's inventory turnover and management practices to ensure optimal use of resources and minimize carrying costs.