Otter Tail Corporation (OTTR)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.46 | 3.73 | 3.32 | 0.06 | 0.06 | |
| DOH | days | 105.39 | 97.93 | 110.07 | 6,528.28 | 6,034.06 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.46
= 105.39
The days of inventory on hand (DOH) for Otter Tail Corporation have exhibited fluctuations over the past five years. The trend shows a general increase in DOH from 73.42 days in 2019 to 92.18 days in 2023, with occasional fluctuations in between. This indicates that the company is carrying inventory for a longer period on average, which may suggest inefficiencies in managing and selling its inventory. The increase in DOH could result in higher carrying costs, as inventory ties up working capital and may lead to potential obsolescence risks. Otter Tail Corporation may need to evaluate its inventory management practices to optimize its inventory levels and turnover, aiming for a more efficient use of its resources.
Peer comparison
Dec 31, 2023