Alliant Energy Corp (LNT)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		4.06	4.23	5.36	5.51	5.25
DOH	days	89.81	86.27	68.07	66.28	69.58

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.06
= 89.81

Days of Inventory on Hand (DOH) is a financial ratio used to measure how efficiently a company manages its inventory. A higher DOH value indicates that the company is taking longer to sell its inventory, while a lower value suggests quicker turnover.

Looking at the trend in Alliant Energy Corp.'s DOH over the past five years, we observe a generally increasing pattern from 56.06 days in 2019 to 77.38 days in 2023. This rise implies a slowdown in inventory turnover, possibly indicating inefficiencies in managing inventory levels or potential issues with sales generation.

The uptrend in DOH could signal excessive inventory holdings, leading to increased storage costs and risks of obsolescence. On the other hand, it might also be a strategic choice to ensure that the company is well-stocked to meet future demand or mitigate supply chain disruptions.

In conclusion, while a higher DOH is not necessarily negative, as it can offer certain benefits such as ensuring product availability, Alliant Energy Corp. should carefully assess the reasons behind the increasing trend to optimize inventory management practices and enhance overall operational efficiency.