Albemarle Corp (ALB)

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		3.54	4.39	4.49	4.44	3.90	2.05	1.58	1.53	2.05	2.03	2.32	2.41	2.92	3.07	3.00	3.21	2.84	2.63	2.64	2.67
DOH	days	103.18	83.09	81.33	82.29	93.56	177.74	230.92	238.37	178.48	179.45	157.60	151.46	125.11	119.04	121.67	113.63	128.32	139.00	138.00	136.64

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 fluctuations over the periods analyzed.

The DOH started at 136.64 days as of March 31, 2020, and gradually increased over the next few quarters, reaching a peak of 238.37 days by March 31, 2023. This significant increase suggests that Albemarle Corp may have experienced challenges in managing its inventory efficiently during this period.

Subsequently, there was a notable decline in the DOH, dropping to 82.29 days by March 31, 2024. This reduction indicates an improvement in inventory management practices, as Albemarle Corp was able to reduce the number of days it takes to sell its inventory.

Overall, the trend in the DOH for Albemarle Corp indicates fluctuations in inventory management effectiveness. A high DOH can tie up capital and increase carrying costs, while a low DOH may suggest inventory shortages or missed sales opportunities. Therefore, it is crucial for Albemarle Corp to continue monitoring and optimizing its inventory management processes to achieve a balance between maximizing sales and minimizing holding costs.