Avista Corporation (AVA)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		4.13	4.39	6.83	5.87	5.91
DOH	days	88.28	83.14	53.41	62.21	61.78

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.13
= 88.28

To analyze Avista Corporation's days of inventory on hand (DOH) over the past five years:

- The company's DOH decreased from 61.78 days as of December 31, 2020, to 53.41 days as of December 31, 2022, indicating an improvement in inventory management efficiency during this period.
- However, there was a significant increase in DOH to 83.14 days as of December 31, 2023, followed by a further increase to 88.28 days as of December 31, 2024. These consecutive increases suggest challenges in managing inventory levels efficiently during these years.
- The spike in the DOH in 2023 and 2024 might indicate issues such as overstocking or sluggish sales, which could lead to increased carrying costs and potential obsolescence risks.
- Further investigation into the reasons behind the sudden increase in DOH in the last two years is recommended to address any underlying operational or supply chain issues impacting Avista Corporation's inventory management.

Overall, while Avista Corporation initially improved its inventory management efficiency, the subsequent upward trend in DOH highlights a potential area of concern that requires attention to optimize inventory levels and costs.