PG&E Corp (PCG)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		16.85	13.59	12.51	16.68	5.18	-8.98	-5.23	-0.76	7.80	32.02	104.55	425.65	101.31	100.38	67.01	35.84	3.34	7.35	11.58	7.11
DOH	days	21.67	26.86	29.18	21.89	70.52	—	—	—	46.82	11.40	3.49	0.86	3.60	3.64	5.45	10.18	109.27	49.69	31.53	51.33

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 16.85
= 21.67

Days of Inventory on Hand (DOH) is a financial ratio that measures the average number of days a company holds its inventory before it is sold. A higher DOH value indicates that the company is taking longer to sell its inventory, which can tie up working capital and increase holding costs.

In the case of PG&E Corp., the DOH has been increasing over the past eight quarters, reflecting a trend of holding inventory for a longer period. In Q4 2023, the company had 75.66 days of inventory on hand, the highest level in the period analyzed. This suggests that PG&E Corp. is carrying more inventory relative to its sales volume.

The rising trend in DOH may indicate inefficiencies in inventory management, potential overstocking, or challenges in sales and demand forecasting. It is important for PG&E Corp. to closely monitor and optimize its inventory levels to ensure efficient operations and minimize associated costs.

Further analysis and comparison with industry benchmarks or historical data could provide additional insights into the effectiveness of PG&E Corp.'s inventory management practices and potential areas for improvement.