Pinnacle West Capital Corp (PNW)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.30 | 6.00 | 6.00 | 5.82 | 5.75 | |
| DOH | days | 57.89 | 60.82 | 60.85 | 62.74 | 63.53 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.30
= 57.89
The days of inventory on hand (DOH) for Pinnacle West Capital Corp has shown a decreasing trend over the past five years. Starting at 63.53 days on December 31, 2020, the DOH decreased to 62.74 days by December 31, 2021, further declining to 60.85 days by December 31, 2022. The trend continued with a slight decrease to 60.82 days by December 31, 2023, and finally reaching 57.89 days by December 31, 2024.
A decreasing DOH indicates that the company is managing its inventory more efficiently, holding less inventory for a shorter period before it is sold. This may signify improved inventory management, effective demand planning, and tighter control over production and supply chain processes. It could potentially lead to lower carrying costs, reduced risk of obsolescence, and healthier cash flow management for the company.
Overall, the decreasing trend in DOH for Pinnacle West Capital Corp over the five-year period reflects positive operational efficiency and effective inventory management practices, which could contribute to improved profitability and financial performance.
Peer comparison
Dec 31, 2024