TXNM Energy, Inc. (TXNM)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		4.06	9.12	17.01	12.12	8.81
DOH	days	89.86	40.03	21.45	30.11	41.42

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.06
= 89.86

The days of inventory on hand (DOH) for TXNM Energy, Inc. have shown fluctuations over the five-year period from 2020 to 2024.

As of December 31, 2020, the company had 41.42 days of inventory on hand. This indicates that, on average, the company held its inventory for approximately 41 days before selling it.

By December 31, 2021, the DOH had decreased to 30.11 days, suggesting an improvement in inventory management efficiency as the company held onto inventory for a shorter period before selling it.

The trend continued in 2022, with the DOH decreasing further to 21.45 days. This sharp decline may signify more effective inventory control measures or a faster inventory turnover rate.

However, by December 31, 2023, the DOH increased to 40.03 days, indicating that the company's inventory turnover rate had slowed compared to the previous year.

The most notable change occurred by December 31, 2024, when the DOH spiked to 89.86 days. This significant increase suggests potential issues, such as excess inventory levels or a slowdown in sales, which could lead to increased carrying costs and reduced liquidity.

In conclusion, the days of inventory on hand for TXNM Energy, Inc. have fluctuated over the years, with a notable increase in 2024, signaling a need for the company to review its inventory management practices and work towards optimizing its inventory turnover rate to ensure efficient operations and cost-effectiveness.