ONEOK Inc (OKE)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 18.67 | 41.46 | 28.65 | 22.43 | 22.26 | |
| DOH | days | 19.55 | 8.80 | 12.74 | 16.27 | 16.40 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 18.67
= 19.55
Oneok Inc.'s days of inventory on hand (DOH) fluctuated significantly over the past five years. In 2023, the DOH increased to 24.08 days from a low of 3.04 days in 2022. This rise indicates that the company held inventory for a longer period in 2023 than in the previous year, potentially causing increased carrying costs and tying up more capital.
Comparing 2023 to 2021 and 2020, Oneok Inc. experienced a similar trend of higher DOH, with 24.08 days in 2023, 4.56 days in 2021, and 26.50 days in 2020. Notably, there was a sharp decrease in DOH from 26.50 days in 2020 to 3.04 days in 2022, suggesting a significant improvement in inventory management efficiency but a subsequent return to higher levels in 2023.
Furthermore, when looking at the trend over a five-year period, the DOH was relatively stable in 2019 and 2020 before decreasing sharply in 2022 and then increasing in 2023. It is essential for Oneok Inc. to carefully monitor its inventory management practices to optimize working capital and operational efficiency, balancing the costs and benefits of holding inventory for various periods.
Peer comparison
Dec 31, 2023