Spire Inc (SR)

Days of inventory on hand (DOH)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Inventory turnover		1.02	0.63	0.12	0.90	0.10
DOH	days	356.58	582.10	3,118.35	407.80	3,552.43

September 30, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.02
= 356.58

The days of inventory on hand (DOH) for Spire Inc. have exhibited fluctuations over the past five years. In 2023, the company reported a DOH of 80.91 days, indicating that on average, its inventory was held for approximately 81 days before being sold. This represents a significant decrease from the previous year's DOH of 166.84 days, suggesting that Spire Inc. has been more efficient in managing its inventory during the current year.

Comparing to the DOH from 2021, which stood at 117.64 days, the decrease in 2023 reflects a continued trend of improvement in the management of inventory. This reduction in DOH may signify better inventory control and management, potentially leading to lower holding costs and a more streamlined supply chain process. However, it is noteworthy that the DOH data for 2020 and 2019 are not available, so the trend analysis is limited to the three most recent years.

The decrease in DOH could potentially indicate enhanced operational efficiency, as a lower DOH implies faster inventory turnover. This may lead to reduced carrying costs and a more agile response to changes in demand. However, it is important to consider the industry context and specific operational factors that may influence inventory management and the DOH metric.