Eversource Energy (ES)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		10.92	4.32	4.87	4.38	5.79
DOH	days	33.43	84.54	75.02	83.30	63.04

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.92
= 33.43

To analyze Eversource Energy's days of inventory on hand (DOH) over the past five years, we can see a fluctuating trend. In 2023, the DOH increased to 35.83 days from 27.25 days in 2022, indicating that the company had its inventory on hand for a longer period compared to the previous year. This may suggest potential issues with inventory management or purchasing decisions.

In 2021, the DOH was 28.96 days, slightly lower than in 2020 when it was 32.45 days, showing an improvement in inventory turnover efficiency. However, it increased again in 2020 compared to 2019 when the DOH was 28.27 days.

Overall, a higher DOH value implies that the company is taking longer to sell its inventory, which could tie up capital and lead to higher storage costs. Conversely, a lower DOH indicates faster inventory turnover, which can free up working capital and reduce holding costs.

Further analysis of the reasons behind the changes in the DOH over the years, such as changes in sales, production, or inventory management practices, would provide deeper insights into Eversource Energy's operations and efficiency.