NRG Energy Inc. (NRG)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 48.69 | 39.19 | 45.93 | 20.00 | 19.07 | |
| DOH | days | 7.50 | 9.31 | 7.95 | 18.25 | 19.14 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 48.69
= 7.50
The days of inventory on hand (DOH) for NRG Energy Inc. have fluctuated over the past five years. In 2019, the company had the highest DOH of 19.14 days, indicating that it took the company almost 19 days to sell its inventory. Subsequently, there was a significant improvement in inventory management, as seen in the decreasing trend in DOH over the next few years.
By 2021, NRG Energy Inc. was able to reduce its DOH to 8.58 days, showing a more efficient inventory turnover process. However, in 2022, there was a slight increase to 9.98 days, suggesting a temporary slowdown in inventory turnover. The most recent data for 2023 demonstrates a further improvement, with the DOH decreasing to 8.27 days, reflecting a faster inventory turnover cycle.
Overall, the decreasing trend in days of inventory on hand for NRG Energy Inc. signals improved inventory management efficiency and potentially better working capital management. This trend indicates that the company is managing its inventory levels effectively and may be responding promptly to changes in market demand.
Peer comparison
Dec 31, 2023