American Axle & Manufacturing (AXL)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		12.17	11.30	10.99	10.80	12.77
DOH	days	30.00	32.31	33.22	33.78	28.58

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.17
= 30.00

American Axle & Manufacturing's Days of Inventory on Hand (DOH) has shown a slight increase over the past five years, from 28.58 days as of December 31, 2020, to 30.00 days as of December 31, 2024. This indicates that the company has been holding onto its inventory slightly longer over the period.

The trend of DOH increasing from 2020 to 2024 suggests that the company may be experiencing challenges in managing its inventory levels efficiently. A higher DOH could imply excess inventory, which ties up working capital and may lead to increased storage costs and potential obsolescence risks.

Although DOH fluctuated between 33.78 days in 2021 and 30.00 days in 2024, the overall trend indicates a need for American Axle & Manufacturing to focus on optimizing its inventory management practices to improve efficiency and liquidity. The company should consider strategies such as better demand forecasting, streamlined production processes, and regular inventory evaluations to reduce the days of inventory on hand and enhance overall operational performance.