National Fuel Gas Company (NFG)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		5.88	6.84	9.72	12.25	8.79	7.13	9.45	7.98	4.90	3.35	4.29	5.03	4.23	2.94	4.00	4.21	1.90	1.83	2.45	2.94
DOH	days	62.04	53.38	37.56	29.80	41.53	51.16	38.64	45.75	74.48	109.08	84.99	72.56	86.25	124.09	91.30	86.80	192.38	199.15	148.97	124.30

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.88
= 62.04

To analyze National Fuel Gas Co.'s days of inventory on hand (DOH) over the specified quarters, we can observe fluctuations in the efficiency of managing inventory levels. The DOH represents the average number of days a company holds inventory before selling it.

From Q2 2022 to Q2 2023, the DOH decreased significantly from 64.00 days to 37.34 days, indicating an improvement in inventory turnover and potentially more efficient operations. However, there was a slight increase in DOH in Q3 2023 to 47.29 days, which could suggest a buildup of inventory or a slowdown in sales.

Subsequently, in Q4 2023, there was a decrease to 67.98 days, which was higher compared to the improvement seen earlier in the year. This might indicate challenges in managing inventory levels efficiently in that quarter.

Q1 2024 shows a further increase in DOH to 84.29 days, reaching the highest level in the data series provided. This could raise concerns about potential inventory management issues, such as overstocking or lower-than-expected sales.

Overall, the trend in National Fuel Gas Co.'s DOH suggests some volatility in inventory management efficiency over the quarters analyzed. It is important for the company to closely monitor and optimize its inventory levels to ensure effective working capital management and operational performance.