One Gas Inc (OGS)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		5.17	6.21	5.68	5.22	6.60
DOH	days	70.53	58.82	64.27	69.90	55.29

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.17
= 70.53

The days of inventory on hand (DOH) for One Gas Inc has displayed some fluctuations over the past five years. As of December 31, 2020, the company had 55.29 days of inventory on hand, which increased to 69.90 days by December 31, 2021. Subsequently, there was a slight decrease to 64.27 days by December 31, 2022, followed by a further drop to 58.82 days by December 31, 2023. However, by December 31, 2024, the DOH had increased again to 70.53 days.

The trend in DOH indicates that the company may have experienced challenges in managing its inventory efficiently, particularly in 2021 and 2024 when the DOH was at its highest levels. A high DOH value could suggest either excessive inventory levels, slow-moving inventory, or issues with demand forecasting. On the other hand, a low DOH value may indicate possible stockouts or underutilization of assets.

Overall, the company should focus on optimizing its inventory management practices to strike a balance between having enough inventory to meet demand while minimizing holding costs and ensuring efficient operations. Regular monitoring and analysis of the inventory turnover and DOH ratios can help One Gas Inc improve its inventory control strategies and enhance overall operational efficiency.