FirstEnergy Corporation (FE)

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		13.04	13.41	13.59	10.69	9.07	10.15	10.86	10.58	10.91	11.64	12.80	13.27	13.25	13.42	11.50	10.28	9.68	10.39	10.74	11.59
DOH	days	27.99	27.22	26.86	34.13	40.22	35.98	33.60	34.50	33.46	31.36	28.52	27.50	27.55	27.19	31.75	35.52	37.69	35.12	33.99	31.48

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.04
= 27.99

The days of inventory on hand (DOH) ratio measures how efficiently a company manages its inventory by indicating the number of days it takes for inventory to be sold or used up. Analyzing the DOH of FirstEnergy Corporation from March 31, 2020, to December 31, 2024, reveals fluctuations in inventory management efficiency.

From March 2020 to September 2021, there was a gradual increase in DOH from 31.48 days to 27.19 days, suggesting improved inventory turnover and efficiency. However, the company experienced a slight increase in DOH to 33.46 days by December 2022, indicating a slower rate of inventory turnover.

Subsequently, FirstEnergy Corporation witnessed fluctuations in its DOH ratio, with a peak of 40.22 days by December 31, 2023, suggesting potential inventory management challenges or excess inventory levels. The company managed to reduce its DOH to 26.86 days by June 30, 2024, indicating a significant improvement in inventory turnover efficiency.

Overall, the company's DOH ratio reflects varying levels of inventory management effectiveness over the analyzed period. The fluctuations in DOH highlight the importance of closely monitoring and optimizing inventory levels to enhance operational efficiency and financial performance.