Archer-Daniels-Midland Company (ADM)
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 | 6.89 | 7.59 | 7.93 | 7.33 | 7.29 | 7.99 | 7.78 | 6.40 | 6.38 | 6.87 | 6.03 | 4.84 | 5.47 | 6.67 | 6.07 | 4.95 | 5.11 | 6.67 | 7.87 | 6.81 | |
| DOH | days | 52.96 | 48.10 | 46.01 | 49.78 | 50.10 | 45.70 | 46.89 | 57.04 | 57.19 | 53.13 | 60.50 | 75.43 | 66.68 | 54.76 | 60.10 | 73.68 | 71.37 | 54.73 | 46.39 | 53.58 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.89
= 52.96
Archer-Daniels-Midland Company's days of inventory on hand (DOH) have shown fluctuations over the years based on the provided data. The company's DOH ranged from a low of 46.01 days on June 30, 2024, to a high of 75.43 days on March 31, 2022.
The general trend indicates some variability in managing inventory levels, with a significant increase observed towards the end of the first quarter of 2022, before gradually decreasing in subsequent periods. This variability may suggest changes in the company's inventory management policies or challenges in predicting demand accurately.
It is important for the company to strike a balance between maintaining optimal inventory levels to meet customer demand promptly while minimizing carrying costs and obsolescence risks. Analyzing the factors contributing to the fluctuations in DOH can help in improving inventory management efficiency and overall operational performance.
Peer comparison
Dec 31, 2024