Nextera Energy Inc (NEE)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.47 | 4.81 | 5.59 | 5.43 | 4.70 | |
| DOH | days | 81.74 | 75.82 | 65.26 | 67.19 | 77.71 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.47
= 81.74
Nextera Energy Inc's days of inventory on hand (DOH) has shown a decreasing trend from 77.71 days as of December 31, 2020, to 67.19 days as of December 31, 2021, further dropping to 65.26 days by December 31, 2022. This indicates the company has been able to manage its inventory more efficiently, potentially reducing holding costs and improving cash flow.
However, the DOH increased to 75.82 days by December 31, 2023, and further to 81.74 days by December 31, 2024. This suggests a potential buildup of inventory relative to sales, which could lead to increased carrying costs and risk of obsolescence. It is important for Nextera Energy Inc to closely monitor its inventory levels to maintain an optimal balance between stock availability and cost-effectiveness.
Peer comparison
Dec 31, 2024