CMS Energy Corporation (CMS)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		1.12	1.21	1.52	1.43	1.47
DOH	days	326.07	300.45	240.33	255.15	247.84

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.12
= 326.07

The Days of Inventory on Hand (DOH) for CMS Energy Corporation has shown a fluctuating trend over the past five years. The DOH increased from 77.95 days in 2019 to 83.83 days in 2020, indicating that the company held inventory for a longer period in 2020. Subsequently, there was a decrease in DOH to 79.30 days in 2021, suggesting a more efficient management of inventory that year. However, the trend reversed in 2022, with DOH rising to 97.89 days, reflecting a potential buildup of inventory. The latest data for 2023 shows the highest DOH at 117.53 days, indicating a significant increase in the number of days the company holds inventory on hand.

Overall, the increasing trend in DOH over the past two years may suggest potential inefficiencies in inventory management or challenges in controlling inventory levels. It is essential for CMS Energy Corporation to closely monitor and optimize its inventory practices to ensure efficient use of resources and maintain profitability.