Entergy Corporation (ETR)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2019	Dec 31, 2018
Inventory turnover		2.03	2.55	2.81	3.45	4.05
DOH	days	180.00	143.01	130.10	105.74	90.07

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.03
= 180.00

The days of inventory on hand (DOH) for Entergy Corp. have shown variability over the past five years. The trend indicates that the company has experienced fluctuations in managing its inventory levels efficiently.

In 2023, the DOH increased significantly to 156.06 days compared to the previous year, reflecting a possible increase in the average number of days it takes for the company to sell its inventory. This could imply potential challenges in inventory turnover and liquidity management during that period.

However, in 2022, there was a notable improvement in inventory management as the DOH decreased to 91.76 days, suggesting a more efficient utilization of inventory. This improvement may have positively impacted the company's working capital and cash flow efficiency.

In 2021, the DOH was 117.05 days, indicating a moderate increase from the previous year. While this could signal a slight delay in inventory turnover compared to 2020, it is crucial to assess the company's specific industry dynamics and operational strategies influencing inventory management during this period.

The year 2020 saw a significant increase in the DOH to 167.83 days, suggesting challenges in managing inventory levels efficiently, potentially leading to increased carrying costs and reduced liquidity. This could require a closer examination of inventory control measures and demand forecasting processes during that year.

Lastly, in 2019, the DOH was at 109.92 days, indicating relatively efficient inventory management compared to 2020. This could imply that the company was more successful in optimizing its inventory levels and maintaining a balance between stock levels and sales requirements during that period.

Overall, the trend in Entergy Corp.'s days of inventory on hand highlights the importance of effective inventory management practices in ensuring operational efficiency, liquidity, and profitability. Continuous monitoring and strategic adjustments in inventory control processes may be necessary to maintain a healthy balance between inventory levels and sales demand.