APA Corporation (APA)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		12.79	8.94	11.29	9.40	7.17
DOH	days	28.54	40.81	32.34	38.84	50.87

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.79
= 28.54

Based on the data provided, APA Corporation's days of inventory on hand (DOH) have shown a decreasing trend over the past five years.

As of December 31, 2020, the company had 50.87 days of inventory on hand. This number decreased to 38.84 days by the end of 2021, further dropping to 32.34 days by the end of 2022. However, in 2023, the DOH increased to 40.81 days before decreasing again to 28.54 days as of December 31, 2024.

The decreasing trend in DOH indicates that APA Corporation has been managing its inventory more efficiently over the years. A lower DOH implies that the company is selling its inventory faster or holding less inventory in relation to its sales, which can lead to lower carrying costs and improved liquidity.

It is important for APA Corporation to continue monitoring its inventory levels and sales to ensure optimal inventory management and maintain an appropriate balance between carrying costs and stockouts.