Chesapeake Energy Corp (CHK)

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		0.21	0.17	0.35	0.12	0.18	2.35	11.91	13.10	8.57	17.89	21.10	4.39	468.11	—	—	10.03	2.79	1.08	1.40	—
DOH	days	1,753.48	2,176.31	1,043.77	2,938.99	2,036.43	155.32	30.65	27.86	42.58	20.40	17.30	83.16	0.78	—	—	36.41	130.78	337.69	261.21	—

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.21
= 1,753.48

Days of Inventory on Hand (DOH) measures how efficiently a company manages its inventory. A higher DOH indicates slower inventory turnover, potentially tying up cash in excess inventory. On the other hand, a very low DOH may imply stockouts or production interruptions.

The analysis of Chesapeake Energy Corp's DOH over the past four years reveals significant fluctuations. The DOH for the most recent quarter, Dec 31, 2023, stands at 1,753.48 days, representing a substantial increase from the previous quarter and indicating a prolonged inventory holding period.

Looking at historical trends, there have been instances of remarkably low DOH values, such as 0.78 days in Mar 31, 2021, and even negative values, which may suggest aggressive inventory management strategies. However, there have also been periods with very high DOH, like 2,938.99 days in Mar 31, 2023, indicating potential inefficiencies in inventory management during those periods.

Overall, the fluctuating nature of Chesapeake Energy Corp's DOH implies varying levels of efficiency in managing its inventory, which could impact the company's working capital management and overall profitability. Further analysis and comparison with industry benchmarks would provide more insights into the company's inventory management performance.