National Fuel Gas Company (NFG)

Days of inventory on hand (DOH)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Inventory turnover		9.51	6.84	7.13	3.35	4.02
DOH	days	38.39	53.38	51.16	109.08	90.70

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.51
= 38.39

The days of inventory on hand (DOH) for National Fuel Gas Company has shown a decreasing trend over the past five years. In particular, the DOH decreased from 90.70 days in 2020 to 38.39 days in 2024. This indicates that the company has been able to manage its inventory more efficiently, holding less inventory on hand relative to its sales volume.

A lower DOH is generally seen as a positive indicator, as it suggests that the company is selling its inventory more quickly or operating with leaner inventory levels. This could result in lower carrying costs, reduced risk of inventory obsolescence, and improved liquidity.

It is important to note that the DOH ratio should be interpreted in conjunction with other financial metrics and industry benchmarks to provide a more comprehensive analysis of National Fuel Gas Company's inventory management efficiency.