Northwest Natural Gas Co (NWN)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		1.39	1.60	2.20	2.52	2.83
DOH	days	262.47	227.86	165.55	144.83	128.84

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.39
= 262.47

The days of inventory on hand (DOH) for Northwest Natural Holding Co have shown variability over the past five years. The company's DOH has fluctuated between 71.50 days in 2021 to 84.86 days in 2019. In 2023, the DOH increased to 82.20 days from 73.99 days in 2022, indicating that the company held inventory for a longer period before it was sold.

A high DOH value suggests that the company may be experiencing slower sales turnover or potential issues with managing inventory efficiently, which could tie up capital in unsold inventory. Conversely, a low DOH value could indicate effective inventory management, leading to quicker sales turnover.

It is important for Northwest Natural Holding Co to monitor and manage its DOH effectively to ensure optimal inventory levels and efficient use of resources. Analyzing the reasons behind the fluctuations in DOH can provide insights into the company's inventory management practices and operational efficiency.