MGE Energy Inc (MGEE)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.38 | 0.31 | 0.26 | 0.38 | 0.39 | |
| DOH | days | 958.14 | 1,161.83 | 1,387.29 | 970.84 | 934.55 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.38
= 958.14
The Days of Inventory on Hand (DOH) for MGE Energy Inc has shown some fluctuations over the past five years. Starting at 934.55 days as of December 31, 2020, the DOH increased to 970.84 days by December 31, 2021. Subsequently, there was a significant spike in DOH to 1,387.29 days by December 31, 2022, indicating a prolonged time it takes for the company to convert its inventory into sales.
While there was a decrease in DOH to 1,161.83 days by December 31, 2023, the metric remained considerably high, suggesting potential inefficiencies in managing inventory levels. However, there was a positive trend as of December 31, 2024, with the DOH decreasing to 958.14 days, reflecting a more efficient inventory management process compared to the preceding years.
Overall, MGE Energy Inc should focus on optimizing its inventory turnover to reduce the number of days inventory is held, which could potentially lead to better cash flow management and overall operational efficiency.