Albemarle Corp (ALB)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		3.54	3.90	2.05	2.92	2.84
DOH	days	103.18	93.56	178.48	125.11	128.32

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.54
= 103.18

The days of inventory on hand (DOH) for Albemarle Corp have shown some fluctuations over the observed period.

As of December 31, 2020, the company had an inventory turnover rate equivalent to 128.32 days, indicating that on average, it took approximately 128 days to sell through its inventory. Subsequently, this metric decreased to 125.11 days by December 31, 2021, suggesting a slight improvement in inventory management efficiency.

However, there was a notable increase in DOH to 178.48 days by December 31, 2022, signifying a potential buildup of inventory relative to sales. The following year, the DOH significantly dropped to 93.56 days by December 31, 2023, suggesting a potential adjustment in inventory levels to align with demand.

By the end of the period on December 31, 2024, Albemarle Corp's DOH stood at 103.18 days, indicating a moderate increase compared to the previous year but still a decrease from the peak observed in 2022.

Overall, the trend in Albemarle Corp's DOH fluctuated during the period, showing both improvements and challenges in effectively managing inventory levels relative to sales activities. It would be essential for the company to monitor and optimize its inventory turnover to maintain a balance between stock levels and sales demand.