Alcoa Corp (AA)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.03 | 4.65 | 4.98 | 4.79 | 4.55 | 4.56 | 4.24 | 4.36 | 4.21 | 4.17 | 3.78 | 3.62 | 4.68 | 5.14 | 5.47 | 5.81 | 5.70 | 5.75 | 5.73 | 5.55 | |
| DOH | days | 72.61 | 78.43 | 73.33 | 76.18 | 80.27 | 80.06 | 86.03 | 83.77 | 86.75 | 87.61 | 96.65 | 100.72 | 78.00 | 71.05 | 66.74 | 62.80 | 64.03 | 63.44 | 63.75 | 65.71 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.03
= 72.61
The Days of Inventory on Hand (DOH) ratio for Alcoa Corp has shown some fluctuations over the past few years. Initially, the DOH was around 65 to 66 days from March 2020 to June 2021, indicating that the company held inventory for approximately two months before selling or using it.
However, from September 2021 to March 2022, the DOH increased significantly to over 70 days, reaching a peak of 100.72 days in March 2022. This substantial increase suggests that Alcoa was holding onto inventory for a longer period, which may indicate issues with inventory management, overstocking, or slowing sales.
Subsequently, from June 2022 to December 2024, there was a gradual decline in the DOH ratio, dropping back down to around 72 to 78 days. This could signal improvements in inventory turnover efficiency and better management of stock levels within the company.
Overall, it is essential for Alcoa Corp to closely monitor its inventory levels and turnover rates to ensure optimal utilization of resources and maintain a healthy balance between carrying sufficient inventory for operations and avoiding excess holding costs.
Peer comparison
Dec 31, 2024