Avient Corp (AVNT)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		6.30	6.46	6.75	8.07	7.50
DOH	days	57.97	56.54	54.11	45.25	48.64

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.30
= 57.97

Days of Inventory on Hand (DOH) is a crucial measure of how efficiently Avient Corp manages its inventory. Looking at the trend over the years, we observe fluctuations in DOH.

In December 2020, Avient Corp had 48.64 days of inventory on hand, indicating that on average, it takes around 48.64 days for the company to sell its inventory. Subsequently, there was a slight improvement as the days decreased to 45.25 by December 2021, suggesting a more efficient management of inventory.

However, from December 2021 to December 2022, there was an increase in DOH to 54.11 days, which continued to rise to 56.54 days by December 2023 and 57.97 days by December 2024. These increments in DOH could imply potential issues such as overstocking, slowing sales, or challenges in inventory management efficiency.

In conclusion, based on the data provided, it is essential for Avient Corp to closely monitor its inventory levels and implement strategies to optimize inventory turnover and maintain a healthy balance between inventory levels and sales demand.