National Fuel Gas Company (NFG)

Days of inventory on hand (DOH)

		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	Dec 31, 2019
Inventory turnover		9.51	4.30	5.35	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
DOH	days	38.39	84.87	68.24	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

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 have fluctuated over the past several periods.

In the most recent period, as of September 30, 2024, the company had 38.39 days of inventory on hand, indicating that the company held inventory for approximately 38 days based on its current usage rate.

Comparing this to previous periods, we observe variations in inventory management. For example, in December 2019, the company had a significantly higher DOH of 192.38 days, suggesting a prolonged period of holding inventory relative to its sales activity. This was followed by a notable decrease in DOH in more recent periods, indicating improvements in managing inventory levels.

It is essential for a company to strike a balance in maintaining optimal inventory levels to avoid stockouts while also minimizing holding costs. Analyzing trends in DOH can provide insights into the company's inventory management efficiency, operational performance, and potential liquidity issues.