CenterPoint Energy Inc (CNP)

Days of inventory on hand (DOH)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 6.54 6.48 6.58 7.13 6.51 6.84 7.91 7.53 6.76 6.28 8.58 10.39 8.46 8.37 11.06 12.69 8.98 10.50 14.32 20.70
DOH days 55.84 56.29 55.45 51.21 56.10 53.38 46.12 48.45 53.97 58.13 42.52 35.11 43.13 43.59 33.01 28.75 40.65 34.76 25.48 17.63

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.54
= 55.84

The days of inventory on hand (DOH) for CenterPoint Energy Inc have shown some fluctuations over the given period, ranging from a low of 17.63 days on March 31, 2020, to a high of 58.13 days on September 30, 2022. Generally, a higher DOH indicates that the company takes longer to sell its inventory, which could tie up cash flow and lead to potential obsolescence risks.

The trend in DOH for CenterPoint Energy Inc shows an overall increasing pattern, especially from the latter part of 2021 towards the end of 2024. This may suggest a build-up of inventory levels relative to sales, which could be a cause for further investigation regarding the company's inventory management practices.

It is essential for the company to closely monitor its inventory turnover ratio and implement efficient inventory management strategies to optimize working capital and ensure that inventory levels do not become excessive, impacting the company's liquidity and profitability. Further analysis of the underlying factors driving the changes in DOH over time would provide more insights into CenterPoint Energy Inc's operational efficiency and financial performance.