FirstEnergy Corporation (FE)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		3.37	3.71	4.07	4.11	4.48	4.87	5.53	5.87	6.08	6.41	5.62	4.96	4.68	4.73	4.89	5.40	5.61	7.00	7.22	9.40
DOH	days	108.27	98.30	89.60	88.77	81.48	74.95	66.01	62.16	60.03	56.96	64.98	73.53	77.97	77.16	74.63	67.64	65.08	52.14	50.57	38.83

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.37
= 108.27

Days of Inventory on Hand (DOH) is a financial ratio that measures the average number of days it takes for a company to sell its inventory. A lower DOH typically indicates that a company is efficiently managing its inventory levels.

Analyzing the trend in Firstenergy Corp.'s DOH over the past eight quarters reveals a consistent decrease in the number of days of inventory on hand. From Q1 2022 to Q4 2023, the DOH has decreased from 27.50 days to 40.22 days, indicating an improvement in inventory turnover efficiency.

The decreasing trend in DOH suggests that Firstenergy Corp. has been able to streamline its inventory management processes, which may lead to reduced holding costs and potential obsolescence risks. This could be attributed to better demand forecasting, more efficient production processes, or effective inventory control measures implemented by the company.

Overall, a decreasing trend in DOH is seen as a positive indicator of operational efficiency and financial management for Firstenergy Corp. It suggests that the company is effectively managing its inventory levels, which could potentially lead to improved profitability and cash flow in the long run.