Chesapeake Utilities Corporation (CPK)
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 | 54.60 | 16.93 | 15.96 | 14.79 | 14.21 | 17.30 | 17.69 | 16.81 | 16.88 | 20.56 | 19.30 | 18.92 | 16.77 | 24.31 | 25.90 | 26.48 | 25.83 | 31.07 | 32.32 | 31.37 | |
| DOH | days | 6.68 | 21.56 | 22.86 | 24.68 | 25.68 | 21.10 | 20.63 | 21.72 | 21.63 | 17.76 | 18.91 | 19.29 | 21.76 | 15.01 | 14.09 | 13.79 | 14.13 | 11.75 | 11.29 | 11.63 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 54.60
= 6.68
The days of inventory on hand (DOH) for Chesapeake Utilities Corporation have shown fluctuations over the reported periods. The trend indicates that the company held inventory for an average of around 11-15 days in the earlier years, but this metric increased notably in recent periods, peaking at 25.68 days by December 31, 2023, before declining to 6.68 days by the end of 2024.
A rising DOH figure suggests that the company may be experiencing challenges in managing its inventory levels efficiently, potentially leading to increased carrying costs and risks of obsolete inventory. Conversely, a decreasing DOH could imply improved inventory management practices, efficient sales, and potentially higher liquidity.
It is essential for the company to closely monitor and manage its inventory levels to strike a balance between maintaining adequate stock to meet customer demand and avoiding excessive holding costs. Further investigation into the reasons behind the significant fluctuations in DOH will be crucial to assess the overall efficiency and effectiveness of Chesapeake Utilities Corporation's inventory management processes.
Peer comparison
Dec 31, 2024