SM Energy Co (SM)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		—	22.22	25.16	53.11	37.70
DOH	days	—	16.43	14.51	6.87	9.68

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

The days of inventory on hand (DOH) for SM Energy Co has exhibited fluctuations over the years based on the provided data.

1. As of December 31, 2020, the company had an inventory holding period of 9.68 days, indicating that on average, inventory was held for approximately 9.68 days before being sold.

2. By December 31, 2021, the DOH decreased to 6.87 days, suggesting an improvement in inventory management efficiency as the company was able to turn over its inventory more quickly.

3. The DOH metric increased significantly by December 31, 2022, reaching 14.51 days. This increase may indicate potential challenges in managing inventory levels efficiently or changes in demand dynamics affecting the company's inventory turnover.

4. Further, by December 31, 2023, the DOH rose to 16.43 days, highlighting a continued trend of increased inventory holding period, which may signal overstocking or slower inventory turnover.

5. Notably, as of December 31, 2024, the data indicates "— days," suggesting that there may be missing or incomplete information for this period, making it difficult to assess the inventory management performance for that year.

In summarizing, the fluctuations in SM Energy Co's days of inventory on hand over the years demonstrate varying levels of efficiency in managing and selling inventory. It is essential for the company to monitor and optimize its inventory levels to ensure optimal working capital utilization and operational effectiveness.