Northwest Natural Gas Co (NWN)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		7.06	6.87	7.99	9.28	11.08
DOH	days	51.68	53.11	45.67	39.34	32.93

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.06
= 51.68

The days of inventory on hand (DOH) for Northwest Natural Gas Co have shown an increasing trend over the past five years. In 2020, the company held inventory for an average of 32.93 days, which increased to 39.34 days in 2021. The trend continued with DOH rising to 45.67 days in 2022, further increasing to 53.11 days in 2023, and slightly decreasing to 51.68 days in 2024.

This indicates that Northwest Natural Gas Co may be taking longer to sell its inventory or experiencing challenges in managing its inventory levels efficiently. A higher DOH can tie up capital in inventory and indicate potential issues with inventory management, such as overstocking or slow-moving inventory.

The company may need to reassess its inventory management practices to optimize inventory levels and turnover, ensuring that inventory is efficiently utilized and does not become obsolete. It is essential for Northwest Natural Gas Co to closely monitor its inventory levels and strive to strike a balance between meeting customer demand and minimizing excess inventory to improve overall operational efficiency and financial performance.