Patterson-UTI Energy Inc (PTEN)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.36 | 1.75 | 1.83 | 3.43 | 16.13 | |
| DOH | days | 108.71 | 208.91 | 198.92 | 106.36 | 22.63 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.36
= 108.71
The days of inventory on hand (DOH) for Patterson-UTI Energy Inc have shown a noticeable increase over the analyzed period, rising from 22.63 days as of December 31, 2020, to 106.36 days as of December 31, 2021. This significant uptrend continued in subsequent years, with DOH reaching 198.92 days by December 31, 2022, and further climbing to 208.91 days by December 31, 2023. However, there was a slight decrease observed by December 31, 2024, with DOH dropping to 108.71 days.
The steep upward trend in DOH from 2020 to 2023 suggests that the company might be facing challenges in efficiently managing its inventory levels. Higher DOH values indicate that Patterson-UTI Energy Inc is taking longer to sell its inventory, which can tie up capital and potentially lead to obsolescence issues.
The slight reduction in DOH by the end of 2024 could imply that the company may have taken steps to address its inventory management concerns. However, further analysis would be needed to determine the effectiveness of any implemented strategies in optimizing inventory turnover and the overall impact on the company's operational efficiency.
Peer comparison
Dec 31, 2024