Alcoa Corp (AA)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.03 | 4.55 | 4.21 | 4.68 | 5.70 | |
| DOH | days | 72.61 | 80.27 | 86.75 | 78.00 | 64.03 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.03
= 72.61
The days of inventory on hand (DOH) for Alcoa Corp have shown an increasing trend over the past five years. In December 2020, the DOH stood at 64.03 days, which has steadily increased to 78.00 days by December 2021, 86.75 days by December 2022, and then slightly decreased to 80.27 days by December 2023. Finally, as of December 31, 2024, the DOH was recorded at 72.61 days.
This indicates that Alcoa Corp has been holding inventory for a longer period over the years, which may tie up cash and increase carrying costs. A higher DOH could also suggest potential issues with demand forecasting, production inefficiencies, or challenges in managing inventory levels effectively. It would be prudent for Alcoa Corp to closely monitor and optimize its inventory management practices to improve operational efficiency and working capital management.
Peer comparison
Dec 31, 2024