Green Plains Renewable Energy Inc (GPRE)

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		13.01	14.78	15.29	17.28	18.27	17.83	15.17	14.11	16.24	16.35	10.88	9.35	13.43	11.43	8.39	8.10	8.98	13.82	16.26	15.60
DOH	days	28.05	24.70	23.87	21.12	19.98	20.47	24.06	25.88	22.48	22.33	33.54	39.02	27.19	31.94	43.51	45.05	40.66	26.41	22.45	23.40

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.01
= 28.05

Days of Inventory on Hand (DOH) is an important ratio that indicates the average number of days it takes for a company to sell its inventory. A lower DOH is generally favorable as it suggests efficient inventory management and faster turnover of goods.

Analyzing Green Plains Renewable Energy Inc's DOH over the provided periods shows fluctuations in the company's inventory management efficiency. From March 31, 2020, to March 31, 2021, DOH increased steadily from 23.40 days to 45.05 days, indicating a significant slowdown in inventory turnover. This trend continued until September 30, 2021, where DOH peaked at 31.94 days before decreasing to 19.98 days by December 31, 2023.

The decrease in DOH from September 30, 2021, to December 31, 2023, suggests improvements in inventory management efficiency, with the company able to sell its inventory more quickly. However, a slight increase in DOH was observed by June 30, 2024, reaching 23.87 days.

Overall, the trend in Green Plains Renewable Energy Inc's DOH reflects fluctuations in its inventory turnover rate over the analyzed period. It is essential for the company to continue monitoring and optimizing its inventory management practices to maintain optimal efficiency and profitability.