DTE Energy Company (DTE)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		0.90	0.99	1.03	1.19	9.79
DOH	days	406.46	368.85	355.56	307.94	37.27

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.90
= 406.46

The Days of Inventory on Hand (DOH) for DTE Energy Company has shown an increasing trend over the years. As of December 31, 2020, the company had 37.27 days of inventory on hand, which increased significantly to 307.94 days by December 31, 2021. This trend continued in the following years, with DOH reaching 355.56 days by December 31, 2022, 368.85 days by December 31, 2023, and 406.46 days by December 31, 2024.

The substantial increase in DOH indicates that DTE Energy Company may be carrying a higher level of inventory relative to its sales. A high DOH can suggest inefficiencies in inventory management, such as overstocking or slow inventory turnover. This could tie up capital in excess inventory and potentially lead to increased holding costs and reduced profitability.

It is crucial for DTE Energy Company to closely monitor its inventory levels and implement efficient inventory management practices to optimize working capital utilization and enhance overall operational efficiency.