Avient Corp (AVNT)

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		6.30	5.79	6.00	6.17	6.43	6.75	6.76	7.64	8.71	8.10	7.92	8.12	8.07	7.37	7.91	7.78	7.50	7.13	8.49	8.44
DOH	days	57.97	62.99	60.88	59.12	56.73	54.10	53.97	47.75	41.92	45.08	46.10	44.96	45.25	49.55	46.12	46.91	48.64	51.22	43.01	43.24

December 31, 2024 calculation

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

The Days of Inventory on Hand (DOH) ratio for Avient Corp has shown some fluctuations over the analyzed period from March 31, 2020, to December 31, 2024. The DOH ratio measures how many days, on average, it takes for a company to sell its inventory.

Avient Corp's DOH ranged between 41.92 days to 62.99 days during the analyzed period. A lower DOH value indicates that the company is selling its inventory at a faster rate, which can be beneficial as it reduces the risk of obsolescence and holding costs. Conversely, a higher DOH value suggests slower inventory turnover, which may tie up capital and increase storage costs.

During the period, Avient Corp experienced a decreasing trend in DOH from September 2023 to December 2024, reaching its lowest point of 41.92 days. This decline indicates a more efficient management of inventory, potentially resulting from improved forecasting, production planning, or sales strategies.

However, in the earlier periods, particularly from March 2020 to September 2021, the DOH ratio was relatively stable, fluctuating within a narrow range of around 43 to 51 days. Subsequently, from September 2021 to June 2024, Avient Corp's DOH saw an upward trend, peaking at 62.99 days in September 2024. This upward trend may raise concerns about overstocking or slower demand that could lead to increased carrying costs and a less efficient use of company resources.

In conclusion, while Avient Corp has shown variability in its DOH ratio over the analyzed period, the recent decline in DOH suggests improvements in inventory management efficiency. It would be essential for the company to continue monitoring and optimizing its inventory levels to strike a balance between meeting customer demand and minimizing holding costs.