Coterra Energy Inc (CTRA)

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		21.00	20.57	20.49	16.96	14.71	13.36	13.29	15.70	14.16	23.72	26.38	25.60	22.15	34.48	22.92	25.21	26.97	12.16	9.73	9.59
DOH	days	17.38	17.75	17.81	21.52	24.81	27.32	27.46	23.25	25.78	15.39	13.84	14.26	16.48	10.59	15.93	14.48	13.53	30.02	37.51	38.06

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 21.00
= 17.38

The days of inventory on hand (DOH) of Coterra Energy Inc have shown fluctuations over the past few years. The company's inventory turnover has varied significantly, with a general trend of decreasing DOH values from 38.06 days on March 31, 2020, to 17.38 days on December 31, 2024.

A lower DOH indicates that the company is managing its inventory more efficiently, as it takes fewer days to sell the inventory on hand. This can be beneficial for controlling storage costs and minimizing the risk of obsolescence.

It is important to note that a sudden decrease or increase in DOH should be further examined to understand the reasons behind the change. Factors such as changes in sales volume, production efficiency, demand fluctuations, and inventory management policies could influence the DOH metric.

Overall, the declining trend in days of inventory on hand for Coterra Energy Inc suggests an improvement in inventory management efficiency over the analyzed period. This can positively impact the company's working capital management and profitability in the long run.