PNM Resources Inc (PNM)

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		13.09	16.92	19.04	24.52	22.61	21.38	16.48	14.77	13.50	10.81	8.47	8.40	7.63	7.20	6.90	6.32	6.04	5.94	6.14	6.64
DOH	days	27.88	21.58	19.17	14.88	16.14	17.08	22.15	24.71	27.04	33.77	43.09	43.46	47.85	50.73	52.92	57.76	60.45	61.40	59.43	54.94

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.09
= 27.88

The days of inventory on hand (DOH) for PNM Resources Inc have shown fluctuation over the past eight quarters. In Q4 2023, the DOH increased to 40.03 days compared to 29.86 days in Q3 2023. This significant increase indicates that PNM Resources Inc held inventory for a longer period during Q4 2023, which may lead to higher carrying costs and potential risks of obsolescence.

Looking back further, in Q2 2023, the DOH was 25.55 days, showing a downward trend from the previous quarter. This suggests that the company managed its inventory more efficiently during that period. However, the DOH increased in Q1 2023 to 19.60 days, indicating a reversal in the trend.

Comparing the latest quarter (Q4 2023) to the same period a year ago (Q4 2022), we observe a higher DOH of 40.03 days compared to 21.45 days. This represents a significant increase in the number of days the company's inventory is held, which may raise concerns about inventory management efficiency.

Overall, the trend in PNM Resources Inc's DOH indicates fluctuations in inventory management effectiveness over the past eight quarters. Further analysis and monitoring of inventory levels and turnover are recommended to ensure optimal operational efficiency and cost control.