Northwest Natural Gas Co (NWN)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		4.33	6.73	7.89	8.70	7.91	8.87	12.05	18.75	7.99	6.38	9.32	17.10	9.28	8.27	12.51	18.33	11.08	10.56	10.78	13.49
DOH	days	84.24	54.20	46.29	41.95	46.16	41.17	30.28	19.46	45.67	57.23	39.17	21.35	39.34	44.14	29.17	19.91	32.93	34.57	33.87	27.07

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.33
= 84.24

Northwest Natural Gas Co's days of inventory on hand (DOH) has shown some fluctuations over the analyzed periods, ranging from a low of 19.46 days to a high of 84.24 days. The company's inventory management efficiency is a crucial aspect to consider, as it indicates how quickly the company is able to convert its inventory into sales.

In general, a lower DOH is preferred as it signifies that the company is selling its inventory quickly and efficiently. Northwest Natural Gas Co experienced a decrease in DOH from March 31, 2021, to March 31, 2022, which suggests improved inventory turnover during this period. However, there were subsequent increases in DOH from September 30, 2022, to December 31, 2024, indicating potential challenges in managing inventory levels.

The increase in DOH could be due to various factors such as changes in demand, production issues, or supply chain disruptions. It is important for the company to closely monitor its inventory levels and ensure they are aligned with market demand to avoid excess inventory buildup that could tie up capital and lead to potential obsolescence.

Overall, Northwest Natural Gas Co should focus on optimizing its inventory management processes to maintain a balance between managing costs and meeting customer demands efficiently. Additionally, the company may benefit from conducting a thorough analysis to identify root causes of inventory fluctuations and implement strategies to improve inventory turnover and reduce days of inventory on hand.