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.
Peer comparison
Dec 31, 2023