Middlesex Water Company (MSEX)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		8.54	16.64	7.83	8.06	7.90
DOH	days	42.72	21.93	46.64	45.31	46.21

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.54
= 42.72

The days of inventory on hand (DOH) for Middlesex Water Company has shown fluctuations over the years. In 2020, the DOH was 46.21 days, indicating that on average, the company held inventory for about 46 days before selling it. The DOH decreased slightly to 45.31 days in 2021, suggesting a more efficient management of inventory. However, in 2022, the DOH increased to 46.64 days, potentially indicating a slower turnover of inventory.

The most significant change occurred in 2023, with the DOH dropping sharply to 21.93 days. This substantial decrease may suggest improved inventory management efficiency, with the company holding inventory for a significantly shorter period before selling it. Nevertheless, in 2024, the DOH increased to 42.72 days, possibly indicating a reversal in inventory management practices compared to the previous year.

Overall, fluctuations in the DOH for Middlesex Water Company reflect changes in inventory management strategies and operational efficiencies, which can impact the company's liquidity, cash flow, and profitability. It is essential for the company to monitor and evaluate its inventory turnover regularly to ensure optimal utilization of resources and maintain a competitive edge in the industry.