Autoliv Inc (ALV)

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		9.05	9.02	9.11	8.29	8.14	8.34	8.12	7.91	9.22	8.16	8.45	8.17	8.41	8.97	8.47	9.27	10.05	10.10	10.03	9.97
DOH	days	40.35	40.49	40.07	44.02	44.87	43.75	44.94	46.16	39.60	44.70	43.21	44.68	43.42	40.71	43.10	39.36	36.34	36.12	36.38	36.61

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.05
= 40.35

Autoliv Inc.'s days of inventory on hand (DOH) has demonstrated a fluctuating trend over the past eight quarters. The company's DOH ranged from a low of 42.38 days in Q2 2023 to a high of 49.16 days in Q1 2022. The average DOH over the period was approximately 45.41 days.

A decreasing trend in DOH can indicate that the company is managing its inventory efficiently, which may lead to lower carrying costs and higher inventory turnover. Conversely, an increasing trend in DOH could suggest potential issues such as overstocking or slow-moving inventory.

It is noteworthy that Autoliv Inc. managed to reduce its DOH from 49.16 days in Q1 2022 to 42.38 days in Q2 2023, indicating improved inventory management. However, the increase in DOH observed in Q1 2023 and Q4 2022 may warrant further investigation to understand the underlying reasons and implications for the company's operations and financial performance.

Overall, analyzing the DOH metric alongside other financial ratios and operational data can provide a more comprehensive assessment of Autoliv Inc.'s inventory management efficiency and effectiveness.