Spire Inc (SR)

Days of inventory on hand (DOH)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Inventory turnover		1.17	1.02	0.63	0.12	0.90
DOH	days	311.73	356.58	582.10	3,118.35	407.80

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.17
= 311.73

The days of inventory on hand (DOH) for Spire Inc have shown significant fluctuations over the past five years. In particular, there was a notable decrease in DOH from 3,118.35 days in 2021 to 582.10 days in 2022, followed by another decrease to 356.58 days in 2023. However, in 2024, the DOH increased to 311.73 days.

The drastic reduction in DOH from 2021 to 2022 suggests an improvement in inventory management efficiency, as the company was able to turn over its inventory more quickly. This trend continued in 2023 but saw a slight increase in 2024.

Overall, the decreasing trend in DOH indicates that Spire Inc has been managing its inventory more effectively in recent years, potentially resulting in lower carrying costs and improved cash flows. However, it is essential for the company to continue monitoring and optimizing its inventory management practices to ensure efficient operations and profitability.