Portland General Electric Co (POR)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		3.78	4.44	5.27	5.03	3.81
DOH	days	96.59	82.17	69.27	72.60	95.74

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.78
= 96.59

The days of inventory on hand (DOH) for Portland General Electric Co have shown a decreasing trend over the past five years. In 2019, the company had a relatively high DOH of 57.07 days, indicating that it took over two months to sell its inventory on average. However, there has been a consistent improvement in managing inventory levels since then.

By the end of 2023, Portland General Electric Co was able to reduce its DOH to 34.66 days, suggesting that it only took about a month to sell its inventory on average. This indicates a more efficient inventory management process, potentially reducing carrying costs and the risk of obsolescence.

The decreasing trend in DOH signals that the company has been more effective in managing its inventory levels, possibly through better forecasting, streamlined operations, and responsive supply chain strategies. Overall, a lower DOH reflects improved liquidity and operational efficiency for Portland General Electric Co.