Edison International (EIX)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		19.30	18.26	23.42	21.87	21.09
DOH	days	18.92	19.99	15.59	16.69	17.31

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 19.30
= 18.92

Days of Inventory on Hand (DOH) is a financial ratio that measures the number of days a company takes to sell its average inventory. A lower number of days typically indicates more efficient inventory management.

Analyzing the DOH for Edison International over the five-year period from 2020 to 2024, we see a slight decrease from 17.31 days in 2020 to 16.69 days in 2021, suggesting an improvement in inventory turnover efficiency. The trend continues with a further decline to 15.59 days in 2022, indicating continued effectiveness in managing inventory levels.

However, in 2023, there is a notable increase in DOH to 19.99 days, which may raise concerns about potential inventory management challenges or changes in the company's operations. This increase could be due to factors such as changes in demand patterns, production disruptions, or supply chain issues.

In 2024, the DOH decreases slightly to 18.92 days, but it remains higher than the levels observed in the earlier years. This indicates that while there has been a partial improvement from the peak in 2023, there may still be room for Edison International to enhance its inventory management practices.

Overall, Edison International's days of inventory on hand fluctuated over the years, with some periods of improvement and challenges. Further analysis and investigation into the factors influencing these fluctuations would be necessary to make informed recommendations for optimizing inventory management in the future.