Axalta Coating Systems Ltd (AXTA)
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 | 6.37 | 5.51 | 6.01 | 5.92 | 5.98 | 6.13 | 5.98 | 5.70 | 5.39 | 5.31 | 5.35 | 5.43 | 5.95 | 5.27 | 5.66 | 5.47 | 5.69 | 6.00 | 6.22 | 6.10 | |
| DOH | days | 57.26 | 66.18 | 60.78 | 61.66 | 61.02 | 59.52 | 61.08 | 64.08 | 67.66 | 68.70 | 68.28 | 67.20 | 61.37 | 69.19 | 64.54 | 66.73 | 64.12 | 60.83 | 58.72 | 59.82 |
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 has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The trend indicates that the company has generally been able to manage its inventory efficiently.
The DOH metric measures how many days, on average, it takes for a company to sell its inventory. A lower DOH value suggests that the company has better inventory management practices, while a higher value may indicate inefficiencies or potential obsolescence risks.
Analyzing the data, we observe that the DOH for Axalta Coating Systems Ltd ranged from a low of 57.26 days on December 31, 2024, to a high of 69.19 days on September 30, 2021. Overall, the company maintained its DOH below 70 days, which is considered a reasonable timeframe for most industries.
It is noteworthy that the DOH increased significantly in the quarter ending September 30, 2021, which could imply inventory inefficiencies or challenges in sales or operations during that period. However, the company managed to bring down the DOH to 57.26 days by December 31, 2024, indicating a potential improvement in inventory management efficiency.
In conclusion, although there were fluctuations in the DOH metric for Axalta Coating Systems Ltd over the analyzed period, the company generally maintained a reasonable level of days of inventory on hand, suggesting effective inventory management practices in place.
Peer comparison
Dec 31, 2024