American Axle & Manufacturing (AXL)

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 12.28 11.91 12.00 11.71 11.35 11.67 11.13 11.15 10.99 11.12 9.89 10.87 10.80 10.86 11.79 12.36 12.77 13.22 12.38 13.38
DOH days 29.73 30.66 30.42 31.16 32.15 31.28 32.80 32.73 33.22 32.83 36.90 33.58 33.78 33.60 30.96 29.54 28.58 27.62 29.49 27.27

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.28
= 29.73

The analysis of American Axle & Manufacturing's days of inventory on hand (DOH) reveals fluctuations in the efficiency of managing inventory levels over the specified periods. From March 31, 2020, to December 31, 2024, the DOH ranged from a low of 27.27 days to a peak of 36.90 days.

During the period under review, the trend in DOH shows a general upward trajectory, indicating a potential slowdown in inventory turnover efficiency. Starting from 27.27 days in March 2020, the DOH increased gradually, reaching its peak at 36.90 days by June 30, 2022. Thereafter, the trend reversed slightly, with fluctuations observed but remaining relatively stable around the mid-30s range.

A higher DOH suggests that the company is taking longer to sell its inventory, which can tie up capital and impact profitability. Conversely, a lower DOH indicates a more efficient inventory management system.

It is important for American Axle & Manufacturing to monitor and optimize its inventory management practices to strike a balance between maintaining sufficient inventory levels to meet demand and minimizing excess inventory that can lead to increased holding costs. Tracking DOH over time can help the company assess trends, identify inefficiencies, and make informed decisions to enhance operational performance and financial health.