Arch Resources Inc (ARCH)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 10.80 | 11.89 | 11.62 | 13.12 | 16.37 | |
| DOH | days | 33.78 | 30.70 | 31.40 | 27.81 | 22.29 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.80
= 33.78
The days of inventory on hand (DOH) for Arch Resources Inc have exhibited an increasing trend over the past five years. From 2019 to 2023, the DOH has risen from 22.29 days to 33.78 days. This indicates that the company is holding onto its inventory for a longer period before selling it. A higher DOH could suggest inefficiencies in inventory management, such as overstocking or slow-moving inventory, which may tie up capital and increase holding costs. It is essential for the company to monitor and optimize its inventory levels to maintain a balance between having enough stock to meet demand and avoiding excess inventory that could lead to potential obsolescence or write-offs.
Peer comparison
Dec 31, 2023