Allegheny Technologies Incorporated (ATI)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.01 | 2.87 | 2.53 | 3.26 | 3.26 | |
| DOH | days | 121.12 | 126.98 | 144.41 | 111.98 | 111.90 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.01
= 121.12
The days of inventory on hand (DOH) for ATI Inc over the past five years have shown fluctuations. The trend indicates a significant increase in DOH from 121.01 days in 2019 to 154.83 days in 2021, followed by a decrease to 135.07 days in 2023. This suggests that the company may have experienced challenges in managing its inventory effectively in 2021 but has made improvements in 2023.
Overall, the DOH metric for ATI Inc has been relatively high, indicating that the company holds its inventory for an extended period before converting it into sales. This could tie up working capital and lead to potential obsolescence or deterioration of inventory. It is essential for ATI Inc to assess and optimize its inventory management practices to enhance operational efficiency and financial performance.