Devon Energy Corporation (DVN)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		1.92	1.81	2.13	6.04	—
DOH	days	190.27	201.52	171.41	60.39	—

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.92
= 190.27

The days of inventory on hand (DOH) for Devon Energy Corporation has shown a notable increase over the past five years. As of December 31, 2020, the company did not provide specific data for DOH. However, from December 31, 2021 to December 31, 2024, the DOH has demonstrated a trend of steady escalation.

The DOH increased from 60.39 days in 2021 to 171.41 days in 2022, and further rose to 201.52 days in 2023. Subsequently, by December 31, 2024, the DOH slightly decreased to 190.27 days. This indicates that Devon Energy Corporation has been holding its inventory for longer periods over the years, which could suggest potential inefficiencies in inventory management.

A high DOH value typically signifies that the company may be facing challenges in selling off its inventory promptly, leading to increased storage costs and potential obsolescence risks. This trend warrants a closer examination of Devon Energy Corporation's inventory management practices to optimize working capital and improve operational efficiency.