Otter Tail Corporation (OTTR)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		3.41	3.46	3.73	3.32	0.06
DOH	days	107.03	105.39	97.93	110.07	6,528.28

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.41
= 107.03

The days of inventory on hand (DOH) for Otter Tail Corporation has exhibited a notable fluctuation over the past five years. Starting at an exceptionally high level of 6,528.28 days as of December 31, 2020, the company managed to significantly reduce its DOH to 110.07 days by December 31, 2021, indicating a substantial improvement in inventory management efficiency.

The trend continued in the subsequent years, with the DOH further decreasing to 97.93 days as of December 31, 2022, and then slightly increasing to 105.39 days by December 31, 2023. By the end of December 31, 2024, the DOH stood at 107.03 days, reflecting a relatively stable inventory management performance in the most recent period.

Overall, the downward trend in days of inventory on hand observed in the initial years and the subsequent maintenance at a more moderate level suggest that Otter Tail Corporation has made commendable efforts in optimizing its inventory turnover and managing its stock levels efficiently over the past five years.