WEC Energy Group Inc (WEC)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		5.92	6.83	7.80	8.36	8.23
DOH	days	61.66	53.47	46.78	43.65	44.34

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.92
= 61.66

Based on the data provided, WEC Energy Group Inc's days of inventory on hand (DOH) has shown a slight fluctuation over the past five years. The trend indicates that the company held its inventory for approximately 44.34 days as of December 31, 2020, which decreased to 43.65 days by December 31, 2021. However, there was an increase in the DOH to 46.78 days by December 31, 2022, further rising to 53.47 days by December 31, 2023, and peaking at 61.66 days as of December 31, 2024.

This increase in the days of inventory on hand could imply potential inventory management challenges for the company, such as overstocking or slower inventory turnover. A higher DOH may tie up working capital in excess inventory, leading to increased carrying costs and potentially indicating inefficiencies in inventory management.

Further investigation into the reasons behind the increase in DOH may be necessary to assess the company's operational efficiency, supply chain management, and overall financial health. Strategic measures may be required to optimize inventory levels and improve inventory turnover to ensure smoother operations and maintain profitability.