Patterson-UTI Energy Inc (PTEN)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.75 | 1.83 | 3.43 | 16.13 | 5.07 | |
| DOH | days | 208.91 | 198.92 | 106.36 | 22.63 | 72.04 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.75
= 208.91
The days of inventory on hand (DOH) for Patterson-UTI Energy Inc has been fluctuating over the past five years. In 2023, the company had an average of 23.84 days of inventory on hand, which has significantly increased compared to the previous year. This rise may indicate that the company is carrying excess inventory relative to its sales levels, potentially tying up working capital.
In 2022, the DOH was 11.82 days, which was a relatively low figure and suggested efficient inventory management. However, the DOH increased in 2023, indicating a potential change in the company's inventory management practices.
Looking back further, the DOH was 14.87 days in 2021 and 15.77 days in 2020, showing a slight increase in inventory levels during those years. In contrast, 2019 had the lowest DOH of 7.83 days, indicating efficient inventory turnover at that time.
Overall, the varying trend in the DOH for Patterson-UTI Energy Inc suggests that the company may need to focus on optimizing its inventory levels and management practices to improve efficiency and utilization of resources.
Peer comparison
Dec 31, 2023