Atmos Energy Corporation (ATO)

Days of inventory on hand (DOH)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Inventory turnover		5.91	4.70	5.80	5.89	6.60
DOH	days	61.79	77.64	62.95	62.02	55.31

September 30, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.91
= 61.79

To analyze the days of inventory on hand (DOH) for Atmos Energy Corp., we can see a fluctuating trend in the DOH ratio over the past five years.

In 2023, the DOH is 70.41 days, which is a decrease from the previous year. This suggests that the company held its inventory for a slightly shorter period in 2023 compared to 2022. The decrease in the DOH ratio indicates an improvement in inventory management efficiency.

In 2022, the DOH was 83.26 days, which was an increase from the previous year. This signifies that the company held its inventory for a longer period in 2022. A higher DOH ratio could indicate excess inventory levels or potential inefficiencies in inventory management.

In 2021, the DOH was 68.46 days, showing a slight increase from 2020. This suggests a longer period of inventory holding in 2021 compared to 2020. It is important to investigate the reasons behind this increase and assess the impact on working capital and liquidity.

In 2020, the DOH was 65.80 days, a moderate increase from 2019. This increase indicates a longer period of inventory holding in 2020, which could potentially tie up working capital and impact the company's liquidity position.

In 2019, the DOH was 57.82 days, showing a relatively lower inventory holding period compared to the subsequent years. This suggests an improvement in inventory management efficiency in 2019.

Overall, the analysis of the DOH for Atmos Energy Corp. indicates fluctuations in inventory management efficiency over the past five years, highlighting the importance of closely monitoring inventory levels and their impact on working capital and liquidity.