Alcoa Corp (AA)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.73 | 4.37 | 4.39 | 5.88 | 6.29 | |
| DOH | days | 77.21 | 83.61 | 83.11 | 62.11 | 58.03 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.73
= 77.21
The days of inventory on hand (DOH) for Alcoa Corp have fluctuated over the past five years. In 2023, the company held inventory for an average of 80.27 days, which was a decrease from 2022 when it was 86.75 days. This indicates that the company managed its inventory more efficiently in 2023 compared to the previous year.
Looking at a longer trend, the DOH was higher in 2022 and 2019 compared to 2021 and 2020. This suggests that Alcoa Corp may have improved its inventory management practices between 2020 and 2021, leading to a decrease in the number of days inventory was held on hand.
Overall, the downward trend in DOH from 2020 to 2023 is a positive indication of potential improvements in inventory management efficiency for Alcoa Corp. However, further analysis and comparison with industry benchmarks would provide more context on the effectiveness of the company's inventory management strategies.
Peer comparison
Dec 31, 2023