WEC Energy Group Inc (WEC)

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		3.24	3.91	4.87	5.90	4.50	3.71	5.04	6.15	4.15	3.70	4.71	5.39	3.41	3.17	3.67	4.26	3.73	3.72	4.48	5.67
DOH	days	112.57	93.43	74.91	61.87	81.17	98.36	72.40	59.38	88.02	98.54	77.43	67.70	106.92	115.09	99.34	85.64	97.98	98.12	81.40	64.34

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.24
= 112.57

WEC Energy Group Inc's Days of Inventory on Hand (DOH) has exhibited fluctuations over the past eight quarters. From Q1 2022 to Q4 2023, the trend shows a gradual increase in DOH, suggesting that the company is holding inventory for a longer duration before it is sold. This could indicate potential inefficiencies in the inventory management system or a slowdown in sales.

The most recent value of DOH in Q4 2023 is 88.67 days, which is higher compared to the previous quarter and significantly higher than the levels seen in Q1 and Q2 2023. This increase may raise concerns about excess inventory levels leading to higher carrying costs and potential obsolescence risks.

Comparing Q4 2023 to the same quarter in the previous year, there is a noticeable uptrend in DOH, indicating a longer inventory turnover cycle. It is essential for the company to monitor and address this trend to ensure optimal inventory levels that support operational efficiency and financial health.

Overall, the analysis of WEC Energy Group Inc's Days of Inventory on Hand suggests a recent increase in inventory holding periods. This trend warrants attention to avoid potential negative implications on the company's financial performance and overall operations.