Atmos Energy Corporation (ATO)

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		4.76	5.91	7.77	10.05	6.33	4.70	7.03	14.68	5.06	5.80	9.72	18.11	6.53	5.89	7.71	9.69	7.06	6.60	8.38	12.64
DOH	days	76.60	61.79	46.97	36.30	57.64	77.64	51.89	24.87	72.07	62.95	37.55	20.16	55.89	62.02	47.34	37.65	51.71	55.31	43.56	28.88

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.76
= 76.60

Days of Inventory on Hand (DOH) is a financial ratio that measures the average number of days it takes for a company to sell its inventory. A higher DOH value indicates that the company is holding onto inventory for a longer period, which may suggest inefficiencies in managing inventory levels or potential issues with sales.

Analyzing Atmos Energy Corp.'s DOH over the past eight quarters shows considerable fluctuations. In Q1 2024, the company had 76.60 days of inventory on hand, which was higher compared to the previous quarter at 70.41 days. This increase suggests that Atmos Energy Corp. may have been holding onto inventory for a longer period in Q1 2024.

Looking further back, in Q2 2023, DOH was 36.30 days, significantly lower than the Q1 2024 value. This indicates that Atmos Energy Corp. was able to manage its inventory more efficiently in Q2 2023, possibly through better inventory planning and management.

The highest DOH value in the data provided was in Q4 2022 at 83.26 days, indicating that the company may have faced challenges in managing inventory levels effectively during that period. Conversely, the lowest DOH value was seen in Q2 2022 at 24.87 days, suggesting an improvement in inventory turnover efficiency during that quarter.

Overall, the fluctuating trend in Atmos Energy Corp.'s DOH indicates varying levels of efficiency in managing inventory over the past eight quarters. Further analysis and comparison with industry benchmarks may provide additional insights into the company's inventory management performance.