Atmos Energy Corporation (ATO)

Days of inventory on hand (DOH)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Inventory turnover		11.22	5.91	4.70	5.80	5.89
DOH	days	32.54	61.79	77.64	62.95	62.02

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.22
= 32.54

The Days of Inventory on Hand (DOH) for Atmos Energy Corporation has shown fluctuations over the past five years. In 2020, the company had 62.02 days of inventory on hand, which decreased slightly to 62.95 days in 2021. However, there was a significant decrease in inventory holding period in 2022 to 77.64 days. Subsequently, in 2023, the DOH continued to decrease to 61.79 days. The most recent data for 2024 indicates a further reduction in the inventory holding period to 32.54 days.

The downward trend in the Days of Inventory on Hand suggests that Atmos Energy Corporation has been able to manage its inventory more efficiently in recent years, potentially resulting in cost savings and improved liquidity. A lower DOH indicates that the company is selling its products more quickly, which may be a positive sign of effective inventory management and operational efficiency. However, it is important for the company to strike a balance between reducing inventory levels and ensuring that it has enough inventory to meet demand.