Black Hills Corporation (BKH)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		2.22	0.44	0.34	0.43	0.52
DOH	days	164.54	820.23	1,062.72	856.79	708.70

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.22
= 164.54

The days of inventory on hand (DOH) for Black Hills Corporation has shown fluctuations over the past five years. In 2020, the DOH stood at a relatively high level of 708.70 days, indicating that the company held its inventory for an extended period before selling it. This figure increased further to 856.79 days by the end of 2021, suggesting a potential inefficiency in managing the inventory levels.

By the end of 2022, the DOH spiked to 1,062.72 days, reaching a significantly elevated level, which may raise concerns about the company's inventory management practices. However, in 2023, there was a decrease in DOH to 820.23 days, reflecting a potential improvement in inventory turnover.

Notably, by the end of 2024, the DOH dropped to 164.54 days, signaling a substantial improvement in inventory management efficiency. This significant decrease in DOH may imply a more streamlined approach to inventory control, leading to a reduction in the time it takes for inventory to be sold.

Overall, the analysis of Black Hills Corporation's days of inventory on hand reveals varying levels of efficiency in managing its inventory over the five-year period, with the most recent data indicating a positive trend towards better inventory management practices.