Axalta Coating Systems Ltd (AXTA)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.37 | 6.11 | 5.50 | 6.10 | 6.33 | |
| DOH | days | 57.26 | 59.74 | 66.34 | 59.88 | 57.65 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.37
= 57.26
The days of inventory on hand (DOH) for Axalta Coating Systems Ltd have exhibited some fluctuations over the past five years. As of December 31, 2020, the company held inventory for an average of 57.65 days before it was sold or used. This figure increased to 59.88 days by the end of 2021, indicating a slight rise in the time taken to turn over inventory.
By December 31, 2022, the DOH further extended to 66.34 days, suggesting that the company was holding inventory for a longer period before converting it into sales. However, in 2023, there was a decrease in the DOH to 59.74 days, showing a partial reversal of the previous year's trend.
In the most recent year, December 31, 2024, the DOH decreased to 57.26 days, nearing the level observed in 2020. This reduction in the number of days it takes to sell or use inventory may indicate improved inventory management efficiency or changing business dynamics for Axalta Coating Systems Ltd.
Overall, monitoring the DOH metric helps evaluate the company's inventory management practices and efficiency in utilizing its resources to generate sales. Fluctuations in the DOH can reflect changes in demand, production, or supply chain management strategies that impact the company's operational performance and financial health.
Peer comparison
Dec 31, 2024