CenterPoint Energy Inc (CNP)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		1.05	1.09	1.60	2.27	8.92
DOH	days	347.40	333.41	228.08	160.79	40.92

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.05
= 347.40

Centerpoint Energy Inc.'s days of inventory on hand (DOH) has shown a fluctuating trend over the past five years. The DOH increased significantly from 34.89 days in 2019 to 104.58 days in 2020, indicating a substantial increase in the number of days it takes to sell off the inventory. This spike may have resulted from excess inventory levels or a decrease in sales during that period.

In 2021, the DOH slightly decreased to 95.04 days, but it rose again in 2022 to 103.44 days. This suggests that the company may still be struggling to efficiently manage its inventory levels. Notably, in 2023, the DOH further increased to 130.12 days, reaching the highest point in the five-year period. This prolonged time to sell inventory could potentially lead to storage costs, obsolescence, or markdowns to clear excess inventory.

Overall, the increasing trend in Centerpoint Energy Inc.'s DOH signals potential inefficiencies in inventory management and highlights the need for the company to streamline its inventory processes to optimize cash flow and improve overall operational performance.