Avient Corp (AVNT)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		8.80	9.13	9.01	9.77	10.77	9.79	9.46	9.75	14.75	9.03	9.85	9.80	9.51	6.95	7.94	8.03	9.00	8.28	7.03	6.63
DOH	days	41.50	39.99	40.51	37.34	33.90	37.29	38.60	37.44	24.75	40.44	37.05	37.25	38.38	52.55	45.95	45.47	40.54	44.08	51.95	55.01

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.80
= 41.50

To analyze Avient Corp's days of inventory on hand (DOH) over the past eight quarters, we observe a fluctuating trend. The DOH ranged from a low of 44.96 days in Q1 2022 to a high of 78.39 days in Q3 2023. This suggests that the company has experienced variability in managing its inventory levels over time.

In general, a higher DOH indicates that Avient Corp is holding onto inventory for a longer period before selling it, which may tie up capital and increase holding costs. Conversely, a lower DOH implies quicker inventory turnover, potentially indicating efficient inventory management.

The increasing trend from Q1 2023 to Q3 2023 suggests that Avient Corp might be facing challenges in managing its inventory effectively, leading to a longer holding period. This could result from issues such as overstocking, changing demand patterns, or supply chain disruptions.

Conversely, the decrease in DOH from Q3 2022 to Q1 2022 indicates an improvement in inventory management efficiency during that period. Avient Corp managed to reduce the number of days it held inventory before selling, potentially freeing up working capital and lowering storage costs.

Further analysis of the factors impacting inventory management, such as demand forecasting, production efficiency, and supply chain dynamics, is warranted to better understand the reasons behind the fluctuations in Avient Corp's DOH and to identify opportunities for improvement in inventory management practices.