Vital Energy Inc. (VTLE)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		78.25	43.58	71.56	32.29	379.11
DOH	days	4.66	8.38	5.10	11.30	0.96

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 78.25
= 4.66

Days of Inventory on Hand (DOH) is a key financial ratio that measures the average number of days a company holds its inventory before selling it. Vital Energy Inc.'s DOH has shown fluctuations over the past five years:

- As of December 31, 2020, Vital Energy Inc. had a remarkably low DOH of 0.96 days, indicating efficient inventory management and a quick turnover of inventory.
- However, by December 31, 2021, the DOH increased significantly to 11.30 days, suggesting a slowdown in inventory turnover and potential issues with managing inventory levels.
- The company managed to reduce its DOH to 5.10 days by December 31, 2022, which may indicate improvements in inventory management or adjustments in production and sales strategies.
- The DOH increased again to 8.38 days by December 31, 2023, reflecting a longer holding period for inventory compared to the previous year.
- Subsequently, by December 31, 2024, the DOH decreased to 4.66 days, showing potential efficiency in inventory management and a return to quicker inventory turnover.

Overall, fluctuations in Vital Energy Inc.'s DOH indicate varying levels of efficiency in managing its inventory over the years. The company should continue to monitor and optimize its inventory levels to ensure optimal operations and financial performance.