Kinder Morgan Inc (KMI)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		9.48	11.21	16.14	16.19	14.78
DOH	days	38.52	32.56	22.62	22.55	24.69

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.48
= 38.52

Kinder Morgan Inc's days of inventory on hand (DOH) has shown a declining trend from 24.69 days as of December 31, 2020, to 22.55 days as of December 31, 2021, and further to 22.62 days as of December 31, 2022. This indicates an improvement in managing inventory levels efficiently over these years.

However, there was a notable increase in DOH to 32.56 days as of December 31, 2023, and a further significant spike to 38.52 days as of December 31, 2024. These increases suggest a potential buildup of inventory relative to sales volume, which may be a cause for concern as it could tie up resources and increase holding costs.

Overall, while the decreasing trend in DOH up to 2022 was positive, the sharp increases in 2023 and 2024 highlight a need for Kinder Morgan Inc to closely monitor and optimize its inventory management processes to ensure efficient use of resources and maintain healthy liquidity levels.