Knife River Corporation (KNF)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023
Inventory turnover		7.17
DOH	days	50.91

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.17
= 50.91

To analyze Knife River Corporation's days of inventory on hand (DOH), we will utilize the formula:

DOH = (Average Inventory / Cost of Goods Sold) x Number of Days in the Period

Given that DOH for the year ended December 31, 2023, is 50.91 days, we need to calculate the Average Inventory for the year as well as the corresponding Cost of Goods Sold.

Using the given DOH formula, we can rearrange it to find the Average Inventory:

Average Inventory = (DOH x Cost of Goods Sold) / Number of Days in the Period

Since DOH is 50.91 days, and assuming a 365-day year for simplicity, we can calculate the Average Inventory for the year ended December 31, 2023.

Further analysis involves comparing the DOH figure to industry benchmarks or previous periods of Knife River Corporation to assess changes in inventory management efficiency and identify areas for improvement. Additionally, monitoring trends in DOH over multiple periods can provide valuable insights into the company's inventory turnover and working capital management strategies.