UNITIL Corporation (UTL)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		24.01	28.67	28.62	33.58	34.58	36.87	37.36	38.48	36.22	25.57	24.52	21.66	23.27	23.26	21.05	15.30	7.39	7.78	8.39	8.10
DOH	days	15.20	12.73	12.75	10.87	10.56	9.90	9.77	9.49	10.08	14.27	14.88	16.85	15.69	15.69	17.34	23.85	49.38	46.92	43.52	45.05

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 24.01
= 15.20

To analyze Unitil Corp.'s days of inventory on hand (DOH) trend, we can observe an increasing trend in DOH from Q1 2022 to Q4 2023. In Q1 2022, the company held inventory for about 12.40 days, which gradually increased to 17.73 days in Q4 2023. This indicates that the company is holding inventory for a longer period in recent quarters, potentially implying slower inventory turnover.

An increasing trend in DOH could suggest various factors such as overstocking of inventory, slowing sales, changes in production efficiency, or supply chain disruptions impacting the company's inventory management.

It is important for Unitil Corp. to monitor and manage its inventory levels effectively to balance the costs associated with carrying excess inventory while ensuring product availability to meet customer demand. Further investigation into the underlying reasons for the increasing DOH trend would be beneficial for optimizing inventory management strategies.