Alcoa Corp (AA)
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 | 4.73 | 4.74 | 4.41 | 4.52 | 4.37 | 3.92 | 3.55 | 3.40 | 4.39 | 5.00 | 5.32 | 5.64 | 5.65 | 6.72 | 6.71 | 5.04 | 3.48 | 1.69 | 0.46 | 0.58 | |
| DOH | days | 77.21 | 76.94 | 82.83 | 80.73 | 83.61 | 93.02 | 102.75 | 107.51 | 83.11 | 72.99 | 68.64 | 64.72 | 64.57 | 54.33 | 54.40 | 72.36 | 104.80 | 215.50 | 796.24 | 633.21 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.73
= 77.21
The days of inventory on hand (DOH) for Alcoa Corp has shown a trend of improvement over the past two quarters, with the DOH decreasing from 86.03 days in Q2 2023 to 80.27 days in Q4 2023. This suggests that Alcoa Corp has been managing its inventory more efficiently, possibly through better inventory management practices or adjustments in production levels.
Comparing the current DOH of 80.27 days in Q4 2023 to the same period in the previous year, there has been a noticeable improvement from 86.75 days in Q4 2022. This reduction in DOH indicates that Alcoa Corp has been able to turn over its inventory at a faster rate, which could potentially lead to lower holding costs and a healthier cash flow position.
Despite the recent improvements, it is worth noting that the DOH for Alcoa Corp peaked at 100.72 days in Q1 2022, before gradually declining over the subsequent quarters. This suggests that there may have been challenges in inventory management in the earlier part of the year, which the company has since been able to address.
Overall, the decreasing trend in DOH for Alcoa Corp indicates an improvement in inventory turnover efficiency, which can have positive implications for the company's profitability and working capital management. Monitoring this ratio over time will be crucial to assess the ongoing effectiveness of Alcoa Corp's inventory management strategies.
Peer comparison
Dec 31, 2023