Public Service Enterprise Group Inc (PEG)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		6.17	9.03	16.32	5.09	5.81
DOH	days	59.13	40.42	22.37	71.66	62.87

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.17
= 59.13

The days of inventory on hand (DOH) for Public Service Enterprise Group Inc. have exhibited fluctuations over the past five years. In 2023, the DOH increased to 114.54 days, which indicates that, on average, the company held its inventory for approximately 114.54 days before selling it. This represents a significant increase from the previous year's DOH of 87.21 days.

Comparing the DOH of 2023 to the DOH figures of the preceding years, we observe a general upward trend in inventory holding periods since 2020. The DOH was notably higher in 2023 compared to 2021 and 2019 when it stood at 77.61 days and 97.10 days, respectively.

The high DOH figure in 2023 may signify potential issues such as overstocking, slower inventory turnover, or changes in demand patterns affecting inventory management. The company may need to assess its inventory management practices to optimize inventory levels and improve operational efficiency.

Overall, the increasing trend in DOH over the past few years suggests a need for Public Service Enterprise Group Inc. to closely monitor its inventory management processes to ensure optimal utilization of resources and minimize carrying costs associated with excess inventory.