Vital Energy Inc. (VTLE)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		78.25	—	—	—	43.58	118.20	36.83	11.21	71.73	10.31	47.90	50.86	32.09	124.64	—	—	328.21	16.60	9.94	3.86
DOH	days	4.66	—	—	—	8.38	3.09	9.91	32.56	5.09	35.39	7.62	7.18	11.38	2.93	—	—	1.11	21.98	36.70	94.51

December 31, 2024 calculation

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

Based on the data provided, Vital Energy Inc.'s days of inventory on hand (DOH) has fluctuated significantly over the period from March 31, 2020, to December 31, 2024. In March 2020, the company had a relatively high DOH of 94.51 days, indicating that it held a significant amount of inventory on hand, possibly leading to inventory carrying costs and potential obsolescence risks.

The DOH decreased sharply by June 2020 to 36.70 days, indicating a more efficient management of inventory levels. Subsequently, the trend continued with further reductions in DOH to as low as 1.11 days by December 2020. A DOH of 1.11 days suggests that Vital Energy Inc. was effectively managing its inventory levels to minimize excess stock.

There were instances where the data shows "— days," indicating missing or incomplete information. Such gaps make it challenging to accurately assess the company's inventory management performance during those periods.

In the following quarters, the DOH fluctuated, with some periods showing increases (e.g., September 2022 and March 2023) and others showing decreases (e.g., December 2023). These fluctuations may reflect changes in demand, production processes, or inventory management strategies within Vital Energy Inc.

Overall, a lower DOH is generally preferable as it indicates efficient inventory management, reducing carrying costs and the risk of obsolete inventory. However, a very low DOH could also suggest potential challenges in meeting customer demand promptly. It is essential for Vital Energy Inc. to monitor its inventory levels carefully and adjust its strategies as needed to maintain an optimal balance between inventory efficiency and customer service levels.