AdvanSix Inc (ASIX)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		6.93	7.99	9.99	6.08	7.27
DOH	days	52.67	45.66	36.54	59.99	50.18

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.93
= 52.67

The days of inventory on hand (DOH) for AdvanSix Inc has shown fluctuations over the past five years. A higher DOH signifies longer it takes for the company to sell its inventory, potentially leading to higher carrying costs and a strain on cash flow.

In 2023, AdvanSix Inc's DOH increased to 56.50 days from 48.22 days in 2022, indicating that the company took longer to sell its inventory compared to the previous year. This increase may raise concerns about potential issues such as overstocking or declining sales.

In 2021, the DOH was at its lowest level over the five-year period at 38.70 days, suggesting that the company managed its inventory efficiently, translating into quicker sales and potentially lower carrying costs.

The DOH in 2020 was notably higher at 64.18 days, reflecting a significant delay in selling inventory compared to previous years. This could have been driven by various factors such as slow demand, inadequate inventory management, or disruptions in the supply chain.

Similarly, in 2019, the DOH was 53.94 days, indicating a moderate delay in inventory turnover. Overall, the trend in AdvanSix Inc's DOH reveals fluctuations in inventory management efficiency over the five-year period, highlighting the importance of closely monitoring and optimizing inventory levels to enhance operational performance and financial health.