NorthWestern Corporation (NWE)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Inventory turnover | 1.13 | 1.08 | 1.10 | |
| DOH | days | 321.96 | 336.53 | 332.26 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.13
= 321.96
The days of inventory on hand (DOH) for NorthWestern Corporation have shown fluctuations over the periods analyzed. As of June 30, 2024, the company had approximately 332.26 days of inventory on hand, which increased slightly to 336.53 days by September 30, 2024, and then decreased to 321.96 days by December 31, 2024.
A higher DOH value suggests that the company may be holding onto excess inventory, which could tie up capital and lead to increased carrying costs. Conversely, a lower DOH value could indicate efficient inventory management, but it might also suggest the risk of stockouts and potential disruptions in the supply chain.
Analyzing the trend in DOH over time can provide insights into NorthWestern Corporation's inventory management efficiency and the effectiveness of its supply chain operations. Further investigation into the underlying reasons for these fluctuations in DOH would be beneficial to assess the company's overall performance in this aspect.
Peer comparison
Dec 31, 2024