Adient PLC (ADNT)

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		17.18	17.08	16.25	15.03	13.86	13.97	13.31	12.49	13.43	13.17	15.85	16.08	16.75	17.63	16.87	18.92	19.97	19.83	20.42	19.60
DOH	days	21.25	21.37	22.46	24.29	26.33	26.13	27.43	29.23	27.17	27.71	23.03	22.69	21.79	20.70	21.63	19.29	18.27	18.41	17.88	18.62

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 17.18
= 21.25

The days of inventory on hand (DOH) for Adient plc have shown a decreasing trend over the past eight quarters. In Q1 2024, the company had 21.25 days of inventory on hand, which was slightly lower than the 21.37 days in Q4 2023. This decrease continued the trend of improvement from the peak of 29.23 days in Q2 2022.

The reduction in DOH indicates that Adient has been managing its inventory levels more efficiently, possibly through improved inventory management practices or better demand forecasting. Lower DOH signifies that the company is selling its products more quickly or holding less excess inventory, which can positively impact cash flow and reduce carrying costs.

Overall, the decreasing trend in days of inventory on hand suggests that Adient plc has been making efforts to streamline its inventory management processes and optimize working capital efficiency. This trend is generally viewed positively by investors and indicates improved operational performance in managing inventory levels.