Axalta Coating Systems Ltd (AXTA)
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 | 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 | 6.34 | 6.39 | 6.63 | 6.66 | |
| DOH | days | 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 | 57.55 | 57.10 | 55.07 | 54.81 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.98
= 61.02
The days of inventory on hand (DOH) for Axalta Coating Systems Ltd have shown a decreasing trend over the past eight quarters. In Q4 2023, the DOH was at 75.86 days, indicating that, on average, the company held its inventory for approximately 75.86 days before selling it. This represents an improvement from the previous quarter where the DOH was 76.96 days.
The gradual decline in the DOH from Q1 2022 to Q4 2023 suggests that the company has been effectively managing its inventory levels and efficiently turning over its inventory. A lower DOH implies that the company is selling its products more quickly, which can lead to lower carrying costs and potentially higher liquidity.
Overall, the downward trend in DOH indicates that Axalta Coating Systems Ltd has been successful in optimizing its inventory management, which can have positive implications for its financial performance and operational efficiency.
Peer comparison
Dec 31, 2023