DTE Energy Company (DTE)

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 0.90 0.75 0.90 0.99 0.99 0.89 1.05 1.21 1.05 0.89 1.13 1.37 1.18 1.18 22.87 — 9.42 1.07 1.12 1.26
DOH days 406.46 484.46 406.95 368.16 368.85 409.24 349.00 302.66 348.36 409.99 323.06 266.89 309.15 308.38 15.96 — 38.75 341.93 325.97 288.98

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 fluctuated over the reported period. In December 2020, the DOH significantly decreased to 38.75 days, indicating more efficient inventory management. However, in subsequent quarters, the DOH increased, reaching a peak of 484.46 days on September 30, 2024. This suggests potential challenges in managing inventory levels efficiently, which could tie up working capital and lead to increased holding costs.

It is essential for DTE Energy Company to monitor its inventory levels closely, streamline its supply chain processes, and potentially implement inventory optimization strategies to improve DOH and enhance overall operational efficiency. Efforts to strike a balance between maintaining adequate inventory levels to meet demand and avoiding excess inventory that could lead to higher costs will be crucial for the company's financial health and performance.