Peabody Energy Corp (BTU)

Days of inventory on hand (DOH)

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Inventory turnover 1.89 2.25 2.04 7.52 2.63
DOH days 193.59 162.57 179.22 48.52 138.90

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.89
= 193.59

Peabody Energy Corp's days of inventory on hand (DOH) has shown an upward trend over the past five years, increasing from 138.90 days in 2019 to 193.59 days in 2023. This indicates that, on average, the company holds onto its inventory for a longer period before converting it into sales.

The significant increase in DOH from 2022 to 2023 suggests that Peabody Energy Corp may be facing challenges in efficiently managing its inventory levels, potentially leading to higher carrying costs and reduced liquidity. It is important for the company to closely monitor and optimize its inventory management practices to improve operational efficiency and profitability.

The spike in DOH in 2020 followed by a decline in the subsequent years could be attributed to the disruptions caused by the COVID-19 pandemic, which impacted supply chains and production schedules across industries. Overall, a detailed analysis of inventory turnover and management strategies would be beneficial for Peabody Energy Corp to enhance its financial performance and competitiveness in the market.


Peer comparison

Dec 31, 2023

Company name
Symbol
DOH
Peabody Energy Corp
BTU
193.59
Alpha Metallurgical Resources Inc
AMR
34.13
Arch Resources Inc
ARCH
33.78