Essential Utilities Inc (WTRG)

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		11.12	10.16	12.65	14.64	9.02	9.14	11.10	12.93	6.09	4.70	8.10	17.00	8.13	7.42	13.14	23.90	11.89	7.95	9.16	11.00
DOH	days	32.82	35.92	28.85	24.93	40.47	39.92	32.87	28.24	59.97	77.62	45.07	21.47	44.89	49.19	27.79	15.27	30.70	45.90	39.85	33.17

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.12
= 32.82

The days of inventory on hand (DOH) for Essential Utilities Inc have shown fluctuations over the past few years. From March 31, 2020, to December 31, 2024, the DOH has ranged from a low of 15.27 days to a high of 77.62 days.

It is noteworthy that the DOH peaked at 77.62 days as of September 30, 2022, indicating that Essential Utilities Inc held inventory for an extended period before selling it. This could be a cause for concern as it may tie up working capital and increase carrying costs.

On the other hand, the lowest DOH of 15.27 days recorded on March 31, 2021, and subsequent decreases in DOH in the following quarters suggest that Essential Utilities Inc managed its inventory efficiently during those periods, possibly resulting in lower carrying costs and better cash flow management.

Overall, the trend in Essential Utilities Inc's DOH indicates fluctuations in inventory management efficiency, highlighting the need for the company to closely monitor and optimize its inventory levels to strike a balance between meeting customer demand and controlling costs effectively.