Public Service Enterprise Group Inc (PEG)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Inventory turnover		5.23	5.45	5.60	6.17	7.04	7.13	7.92	8.99	15.11	15.51	15.05	14.68	7.64	5.04	5.08	4.96	4.87	4.93	5.18	5.71
DOH	days	69.75	67.03	65.21	59.14	51.85	51.16	46.09	40.61	24.15	23.54	24.25	24.87	47.77	72.46	71.89	73.64	75.00	74.02	70.47	63.90

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.23
= 69.75

The days of inventory on hand (DOH) for Public Service Enterprise Group Inc have fluctuated over the past few years. From December 31, 2019, to June 30, 2021, the DOH showed an increasing trend, reaching a peak of 75.00 days on September 30, 2020. However, starting from the end of 2021, the DOH experienced a significant decline, dropping to 24.87 days by December 31, 2021, and further decreasing to around 23-25 days throughout the first half of 2022.

This reduction in DOH could indicate that Public Service Enterprise Group Inc has been managing its inventory more efficiently, potentially leading to lower carrying costs and better liquidity. However, a sudden drop in DOH may also raise concerns about stockouts or supply chain disruptions.

Subsequently, the DOH increased gradually from December 31, 2022, reaching 69.75 days by December 31, 2024. This upward trend suggests that the company may have increased its inventory levels, possibly in anticipation of higher demand or to mitigate risks associated with supply chain disruptions.

Overall, while a lower DOH can indicate efficient inventory management, it is essential for Public Service Enterprise Group Inc to strike a balance between managing carrying costs and ensuring adequate inventory levels to meet customer demands effectively. Monitoring inventory turnover and aligning inventory practices with market conditions can help optimize working capital and enhance overall financial performance.