Archer-Daniels-Midland Company (ADM)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.23 | 6.36 | 5.47 | 5.11 | 6.60 | |
| DOH | days | 50.50 | 57.36 | 66.68 | 71.37 | 55.31 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.23
= 50.50
Archer-Daniels-Midland Company's days of inventory on hand (DOH) have demonstrated a decreasing trend over the past five years, indicating an improvement in inventory management efficiency. In 2023, the company had 50.50 days of inventory on hand, a decrease from 57.36 days in 2022, 66.68 days in 2021, 71.37 days in 2020, and 55.31 days in 2019. This trend suggests that the company has been able to convert its inventory into sales at a faster rate, which can help reduce carrying costs, minimize the risk of obsolete inventory, and improve cash flow. However, it is important for the company to continue monitoring and optimizing its inventory management practices to maintain this positive trend and enhance overall operational effectiveness.
Peer comparison
Dec 31, 2023