Pinnacle West Capital Corp (PNW)

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		5.94	6.02	5.89	6.10	6.00	5.59	5.75	5.81	5.74	5.42	5.41	5.71	5.75	6.97	6.55	6.02	5.60	4.34	4.43	4.60
DOH	days	61.50	60.59	61.93	59.84	60.85	65.29	63.53	62.84	63.59	67.35	67.52	63.90	63.53	52.40	55.69	60.64	65.23	84.10	82.31	79.40

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.94
= 61.50

The days of inventory on hand (DOH) for Pinnacle West Capital Corp. has shown a fluctuating trend over the past eight quarters. In Q4 2023, the company had an inventory turnover period of approximately 100.49 days, which decreased compared to the previous quarter (Q3 2023) when it was 96.28 days. This indicates that Pinnacle West was able to sell off its inventory at a slightly slower pace in Q4 2023.

Looking at the year-over-year comparison, the DOH in Q4 2023 (100.49 days) was slightly lower than Q4 2022 (100.95 days). However, when considering a longer-term trend, there has been a general decrease in inventory turnover time since Q2 2022 when the DOH reached its peak at 113.44 days.

The decreasing trend in DOH from the second quarter of 2022 could suggest that Pinnacle West has been managing its inventory more efficiently and selling off its products more quickly. It is essential to keep monitoring future quarters to see if this trend continues and to assess the impact of inventory management on the company's operational efficiency and financial performance.