OGE Energy Corporation (OGE)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		11.72	9.89	20.54	65.20	52.54
DOH	days	31.14	36.91	17.77	5.60	6.95

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.72
= 31.14

The days of inventory on hand (DOH) for OGE Energy Corporation has experienced fluctuations over the years. In December 2020, the company had a DOH of 6.95 days, indicating that it took approximately 6.95 days for the company to sell its inventory.

By December 2021, OGE Energy had improved its inventory management, with the DOH decreasing to 5.60 days. This suggests that the company was able to turn over its inventory more quickly, potentially leading to better liquidity and operational efficiency.

However, there was a significant increase in the DOH by December 2022, jumping to 17.77 days. This increase may indicate challenges in managing inventory levels efficiently, leading to a longer time to sell inventory.

The trend continued into December 2023, with the DOH rising further to 36.91 days. This substantial increase could raise concerns about potential inventory overstocking or slow-moving inventory, which may impact the company's profitability and cash flow.

By December 2024, there was a slight improvement in the DOH, decreasing to 31.14 days. While the decrease is positive, the DOH still remains significantly higher compared to previous years, indicating that OGE Energy Corporation may still be facing challenges in optimizing its inventory management practices.

Overall, the fluctuation in OGE Energy's DOH over the years highlights the importance of effective inventory management in ensuring optimal operational performance and financial health.