SM Energy Co (SM)

Days of inventory on hand (DOH)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover — — — — 22.22 47.87 16.19 15.01 25.16 30.18 71.35 136.40 53.11 49.82 — — 37.70 9.74 6.19 2.97
DOH days — — — — 16.43 7.62 22.55 24.31 14.51 12.10 5.12 2.68 6.87 7.33 — — 9.68 37.47 58.93 122.86

December 31, 2024 calculation

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

The days of inventory on hand (DOH) for SM Energy Co have shown significant fluctuations over the past few years.

From March 31, 2020, to December 31, 2020, the company's DOH decreased substantially from 122.86 days to 9.68 days, indicating more efficient management of inventory levels. However, the DOH increased slightly to 12.10 days by September 30, 2022, before rising further to 24.31 days by March 31, 2023.

The trend reversed in the subsequent quarters, with the DOH declining to 16.43 days by December 31, 2023. This downward trend continued with further reductions in the DOH to 5.12 days by June 30, 2022, and 2.68 days by March 31, 2022, reflecting improved inventory management and turnover.

Overall, the company's inventory management has been inconsistent, with periods of both high and low DOH. It is essential for SM Energy Co to maintain an optimal balance in inventory levels to ensure efficient operations and cash flow management. Further analysis of the company's inventory turnover ratio and industry benchmarks could provide deeper insights into its inventory management effectiveness.