Evergy, Inc. (EVRG)

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		3.57	4.09	4.18	3.80	3.88	3.96	4.26	4.48	4.80	4.99	4.36	4.27	5.21	5.36	5.42	5.88	5.01	4.99	5.00	5.30
DOH	days	102.37	89.25	87.35	96.07	94.03	92.28	85.59	81.54	76.05	73.10	83.70	85.53	70.00	68.08	67.40	62.03	72.92	73.13	73.03	68.90

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.57
= 102.37

Days of Inventory on Hand (DOH) is a financial ratio that measures how many days, on average, a company holds inventory before selling it. A higher DOH value typically indicates slower inventory turnover, which may suggest inefficiencies in inventory management or potential obsolescence risks.

Analyzing Evergy, Inc.'s DOH over multiple periods reveals fluctuations in the efficiency of their inventory management. From March 31, 2020, to June 30, 2022, Evergy's DOH ranged from around 62 to 85 days, implying some variability in their inventory turnover during this period. The peak DOH value of 85.59 days on June 30, 2023, suggests a potential buildup of excess inventory that could impact liquidity and profitability.

The upward trend in DOH from September 30, 2023, to December 31, 2024, reaching a high of 102.37 days, indicates a significant increase in the time inventory is held before being sold. This may signal challenges in forecasting demand, inadequate inventory control, or slowing sales, potentially leading to higher carrying costs and reduced cash flows.

Overall, the analysis of Evergy, Inc.'s DOH highlights the importance of efficient inventory management practices to optimize working capital, enhance operational performance, and sustain financial health in a dynamic business environment.