Southern Company (SO)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		0.56	0.80	0.75	0.69	0.79
DOH	days	647.34	458.73	487.29	528.59	461.42

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.56
= 647.34

The days of inventory on hand (DOH) for Southern Company have fluctuated over the past five years. In 2023, the company had 164.18 days of inventory on hand, which represents an increase from the previous year where it was 82.61 days. This indicates that Southern Company held inventory for a longer period in 2023 compared to 2022.

Looking further back, the trend shows variability in the DOH ratio:
- In 2021, the DOH was 123.43 days, which was higher than in 2022 but lower than in 2020.
- In 2020, the company had a DOH of 179.29 days, indicating an increase in the number of days it took to sell its inventory compared to 2021.
- In 2019, the DOH was 140.77 days, falling between the values of 2020 and 2021.

Overall, the fluctuations in Southern Company's days of inventory on hand suggest varying efficiencies in managing its inventory levels and sales processes over the past five years. Further analysis would be needed to understand the reasons behind these changes and assess the effectiveness of the company's inventory management strategies.