Black Hills Corporation (BKH)

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		0.44	0.43	0.52	0.55	0.34	0.31	0.44	0.61	0.43	-1.83	-1.73	-1.93	-1.70	1.04	0.55	0.62	0.49	0.47	0.55	0.66
DOH	days	820.23	854.96	697.80	659.60	1,062.72	1,192.72	827.98	598.63	856.79	—	—	—	—	352.01	658.38	589.48	751.37	775.96	661.06	555.48

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.44
= 820.23

The days of inventory on hand (DOH) for Black Hills Corporation have shown fluctuations over the past eight quarters. In Q1 2022, the DOH was 44.60 days, which decreased to 39.77 days in Q2 2023, before increasing to 51.70 days in Q3 2023. This was followed by a further increase to 59.75 days in Q4 2023.

Overall, the trend indicates that the company has been carrying more inventory relative to its sales in recent quarters. A higher DOH could imply slower inventory turnover and potentially higher carrying costs. It is important for management to closely monitor and optimize inventory levels to ensure efficient operations and cost-effectiveness.