Xcel Energy Inc (XEL)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.29 | 1.37 | 1.50 | 1.82 | 1.47 | |
| DOH | days | 282.70 | 266.21 | 243.20 | 200.69 | 247.89 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.29
= 282.70
The days of inventory on hand (DOH) ratio for Xcel Energy, Inc. has shown a fluctuating trend over the past five years. In 2023, the company held inventory for an average of 44.88 days, which was an increase from 42.12 days in 2022. This suggests that Xcel Energy took longer to sell its inventory in 2023 compared to the previous year.
Looking back further, the DOH was 39.36 days in 2021, 46.08 days in 2020, and 44.44 days in 2019. The increase in 2020 followed by a decrease in 2021 indicates a potential adjustment in inventory management practices. However, the subsequent increase in 2022 and 2023 raises questions about the efficiency of inventory management.
It is important for Xcel Energy to assess the reasons behind these fluctuations in the DOH ratio. A higher DOH may indicate overstocking or slow-moving inventory, leading to increased holding costs and potential obsolescence risks. Conversely, a lower DOH could signal insufficient inventory levels, potentially affecting the company's ability to meet customer demand.
Therefore, Xcel Energy should continue monitoring and analyzing its inventory turnover and sales trends to optimize its inventory management practices and improve overall operational efficiency.
Peer comparison
Dec 31, 2023