Nextera Energy Inc (NEE)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		5.10	5.03	5.29	4.71	4.81	5.03	5.62	5.71	5.59	5.78	5.77	5.60	5.42	4.65	4.91	4.68	4.68	5.24	5.49	5.72
DOH	days	71.55	72.59	68.96	77.53	75.83	72.52	64.98	63.97	65.26	63.18	63.21	65.15	67.39	78.55	74.27	77.96	77.96	69.65	66.47	63.79

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.10
= 71.55

Nextera Energy Inc's days of inventory on hand (DOH) has shown some fluctuation over the past few years. The trend indicates an increase in inventory holding periods from March 31, 2020 (63.79 days) to December 31, 2021 (67.39 days), followed by a slight decrease to 63.21 days by June 30, 2022. This lower DOH by mid-2022 suggests improved inventory management efficiency.

However, there was a subsequent increase in DOH to 75.83 days by December 31, 2023, which continued to rise to 77.53 days by March 31, 2024. This increase indicates a longer period of time that inventory remains on hand before being sold or used, potentially tying up working capital.

Further monitoring of inventory levels and management practices may be warranted to optimize working capital and ensure efficient operations, as elevated DOH can lead to increased holding costs and potential risks related to inventory obsolescence or markdowns. Additionally, a comparison with industry benchmarks and historical performance could provide more insights into Nextera Energy Inc's inventory management efficiency.