Albemarle Corp (ALB)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.90 | 2.05 | 2.92 | 2.84 | 3.03 | |
| DOH | days | 93.56 | 178.48 | 125.11 | 128.32 | 120.38 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.90
= 93.56
Albemarle Corp.'s days of inventory on hand (DOH) has shown fluctuations over the past five years. The company's DOH decreased significantly from 178.48 days in 2022 to 93.56 days in 2023, indicating a more efficient management of inventory levels. This reduction suggests that Albemarle has been able to turn its inventory into sales more quickly in 2023 compared to the previous year.
Comparing 2023 to 2021 and 2022, it can be observed that the DOH was notably lower in 2023, showing a positive trend towards inventory optimization. Although the DOH in 2023 is lower than in the previous two years, it is still higher than in 2019 when the company had 120.38 days of inventory on hand.
Overall, the decreasing trend in Albemarle's DOH in 2023 reflects an improvement in inventory management efficiency. However, it is important for the company to continue monitoring and optimizing its inventory levels to ensure a balance between meeting customer demand and controlling carrying costs.
Peer comparison
Dec 31, 2023