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