Pinnacle West Capital Corp (PNW)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		6.00	6.00	5.82	5.75	5.60
DOH	days	60.82	60.85	62.74	63.53	65.23

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.00
= 60.82

The days of inventory on hand (DOH) for Pinnacle West Capital Corp. have shown a fluctuating trend over the last five years.

In 2023, the company had a DOH of 100.49 days, which was slightly lower compared to the previous year's 100.95 days. This decrease indicates that the company was able to manage its inventory more efficiently in 2023.

However, looking back over the past five years, Pinnacle West's DOH has generally been on the higher side, with figures ranging from 100.49 days to 122.83 days. This suggests that the company might be carrying excess inventory relative to its sales level, which can tie up capital and lead to higher storage costs.

It is crucial for the company to monitor and potentially optimize its inventory management practices to ensure that inventory levels are in line with sales volumes and market demand. By improving inventory turnover and reducing DOH, Pinnacle West could enhance its working capital efficiency and overall financial performance.