American Water Works (AWK)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		0.60	0.46	0.42	0.67	0.94
DOH	days	606.37	786.15	872.44	547.50	389.89

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.60
= 606.37

American Water Works' days of inventory on hand (DOH) has shown fluctuations over the past five years, starting at 389.89 days on December 31, 2020, and increasing to 547.50 days by the end of 2021, indicating a rise in the number of days it takes to sell its inventory.

The trend continued with a significant spike to 872.44 days on December 31, 2022, which suggests a potential issue with inventory management or demand forecasting during that period. However, American Water Works managed to bring the DOH down to 786.15 days by the end of 2023, although it still remained at a relatively high level.

By the end of 2024, the DOH decreased further to 606.37 days, indicating some improvement in inventory turnover efficiency compared to the peak in 2022. Overall, the trend in American Water Works' DOH reflects varying levels of inventory management effectiveness and potentially changing business conditions impacting inventory turnover rates over the analyzed period.