NRG Energy Inc. (NRG)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		46.23	43.70	36.55	41.13	20.00
DOH	days	7.89	8.35	9.99	8.87	18.25

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 46.23
= 7.89

The days of inventory on hand (DOH) for NRG Energy Inc. have shown a decreasing trend over the years based on the data provided. As of December 31, 2020, the company had an inventory turnover cycle of 18.25 days, which decreased to 8.87 days by December 31, 2021. Subsequently, by the end of 2022, the DOH increased slightly to 9.99 days before declining again to 8.35 days by December 31, 2023. Finally, as of December 31, 2024, NRG Energy Inc. further improved its inventory management with a DOH of 7.89 days.

This trend indicates that the company has been more efficient in managing its inventory over the years, resulting in a shorter time period for converting inventory into sales. A decreasing DOH generally signifies effective inventory management practices, such as optimizing stock levels and improving demand forecasting to ensure smoother operations and potentially higher profitability.