Devon Energy Corporation (DVN)

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		1.85	1.68	1.84	1.96	1.80	1.91	2.19	2.07	2.13	—	—	—	5.92	—	—	—	—	4.78	5.37	6.22
DOH	days	196.90	216.93	198.67	186.48	202.87	190.68	166.36	176.26	171.41	—	—	—	61.64	—	—	—	—	76.40	67.96	58.65

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.85
= 196.90

The days of inventory on hand (DOH) for Devon Energy Corporation have shown fluctuating trends over the analyzed periods. The DOH increased from 58.65 days as of March 31, 2020, to 67.96 days by June 30, 2020, and further to 76.40 days by September 30, 2020. However, there was missing data on the DOH for the following quarters up to March 31, 2021.

As of December 31, 2021, the DOH decreased to 61.64 days, suggesting a more efficient management of inventory. The following quarters up to September 30, 2022, had missing data on the DOH again.

From December 31, 2022, the DOH surged significantly to 171.41 days, continuing to rise to 202.87 days by December 31, 2023. This substantial increase may indicate potential issues with inventory management or a change in inventory holding practices.

However, a decline was observed in the DOH to 186.48 days by March 31, 2024, followed by a slight increase to 198.67 days by June 30, 2024, and a further rise to 216.93 days by September 30, 2024. A subsequent drop to 196.90 days by December 31, 2024, may suggest adjustments in inventory levels.

In conclusion, the analysis of Devon Energy Corporation's DOH indicates fluctuations in inventory management effectiveness, with periods of both increase and decrease in inventory holding days. These changes can be attributed to various factors such as production levels, demand fluctuations, and supply chain dynamics. Further evaluation of the underlying reasons behind these fluctuations would be necessary to assess the implications for the company's operations and financial performance.