PG&E Corp (PCG)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		18.88	16.85	5.18	7.80	3.16
DOH	days	19.33	21.67	70.52	46.82	115.58

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 18.88
= 19.33

Based on the provided data, the days of inventory on hand (DOH) for PG&E Corp has shown significant fluctuations over the past five years.

As of December 31, 2020, the company had 115.58 days of inventory on hand, indicating a relatively high level of inventory relative to its sales. However, over the subsequent years, there was a notable decrease in the DOH. By December 31, 2024, PG&E Corp had reduced its DOH to just 19.33 days, reflecting a more efficient management of inventory.

The decreasing trend in DOH suggests that PG&E Corp has been able to streamline its inventory management processes, possibly by improving demand forecasting, implementing just-in-time inventory systems, or optimizing its supply chain. A lower DOH generally indicates a more efficient use of resources and working capital, as excess inventory ties up funds that could otherwise be invested elsewhere.

It is important for PG&E Corp to continue monitoring its DOH to ensure that inventory levels are aligned with customer demand and market conditions. Maintaining an optimal balance between inventory levels and sales is crucial for managing costs, maximizing profitability, and meeting customer expectations.