Essential Utilities Inc (WTRG)

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		3.26	0.29	0.31	0.28	0.11	0.17	0.23	0.42	0.18	0.45	0.73	1.21	0.26	4.07	4.82	6.14	10.95	12.23	14.55	16.90
DOH	days	111.99	1,257.36	1,175.64	1,286.70	3,350.64	2,195.01	1,566.06	863.31	2,043.51	814.68	498.33	301.59	1,380.15	89.59	75.73	59.48	33.33	29.84	25.09	21.60

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.26
= 111.99

The days of inventory on hand (DOH) for Essential Utilities Inc have shown fluctuations over the past eight quarters. In Q4 2023, the DOH metric stood at 116.73 days, indicating a higher level of inventory relative to the previous quarter. This increase followed a decreasing trend from Q3 2023, where DOH was at 82.78 days.

Looking back further, there was a substantial decline in inventory holding period from Q3 2022 to Q1 2022, with DOH dropping from 170.20 days to 49.46 days. This trend suggests effective inventory management during that period.

The Q4 2022 figure of 121.10 days showed an increase compared to the preceding quarters, reflecting a potential buildup in inventory levels. However, this was followed by a downward trend in the next three quarters.

Overall, Essential Utilities Inc should continue monitoring its inventory closely to ensure optimal levels that support operational efficiency and avoid potential issues such as carrying excess inventory or facing stockouts. Tracking DOH over time can provide valuable insights into the company's inventory management performance and effectiveness.