AdvanSix Inc (ASIX)

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		6.43	6.61	7.87	7.19	6.46	5.85	6.50	7.06	7.57	10.51	10.22	8.99	9.43	9.30	8.77	7.55	5.69	6.03	5.78	7.38
DOH	days	56.81	55.23	46.36	50.78	56.50	62.44	56.16	51.71	48.22	34.72	35.72	40.62	38.70	39.26	41.64	48.37	64.18	60.54	63.11	49.44

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.43
= 56.81

Days of Inventory on Hand (DOH) is a key financial ratio that provides insight into how efficiently a company manages its inventory. AdvanSix Inc's DOH has shown fluctuations over the past several quarters.

From March 31, 2020, to June 30, 2020, there was a notable increase in DOH from 49.44 days to 63.11 days, which could indicate potential inventory management challenges. However, from June 30, 2020, to September 30, 2020, DOH decreased to 60.54 days, suggesting some improvement in inventory turnover efficiency.

The trend continued with further reductions in DOH to 48.37 days by March 31, 2021, which indicates better inventory management. The following quarters saw a declining trend in DOH, reaching a low of 34.72 days by September 30, 2022, showing a significant improvement in inventory turnover efficiency.

However, there was a slight increase in DOH to 48.22 days by December 31, 2022, and fluctuated around the mid-50s range in the subsequent quarters up to December 31, 2024. This fluctuation may indicate challenges in managing inventory levels consistently.

Overall, AdvanSix Inc's DOH has shown variability, with periods of improvement in inventory turnover efficiency followed by some fluctuations. It is important for the company to continue monitoring and optimizing its inventory management practices to maintain a healthy balance between stocking enough inventory to meet demand and avoiding excess carrying costs.