Kinder Morgan Inc (KMI)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		11.21	16.14	16.19	14.78	11.19
DOH	days	32.56	22.62	22.55	24.69	32.63

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.21
= 32.56

The days of inventory on hand (DOH) for Kinder Morgan Inc have fluctuated over the past five years. In 2023, the DOH increased to 38.81 days from 25.00 days in 2022, indicating that the company held inventory for a longer period before selling it. This could be a sign of excess inventory or slower sales turnover.

Comparing 2023 to 2021, there was an increase in DOH from 31.59 days to 38.81 days, suggesting a further increase in the time taken to sell inventory. This may raise concerns about potential obsolescence or inefficiencies in managing inventory levels.

However, the DOH in 2023 was lower than in 2020 and 2019, implying an improvement in inventory management efficiency compared to those years. Despite the recent increase, Kinder Morgan Inc may still be managing its inventory better than in the past.

Overall, a thorough investigation into the reasons behind the fluctuations in DOH is recommended to assess the impact on the company's operations and financial performance.