Ball Corporation (BALL)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.75 | 6.22 | 6.61 | 7.46 | 8.08 | |
| DOH | days | 47.13 | 58.67 | 55.25 | 48.94 | 45.17 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.75
= 47.13
To analyze Ball Corp.'s days of inventory on hand (DOH) over the past five years, we can see a fluctuating trend.
In 2019, the DOH was at 50.53 days, indicating that, on average, Ball Corp. held approximately 50.53 days worth of inventory on hand. This number increased slightly in 2020 to 52.97 days before decreasing to 59.10 days in 2021. The DOH then decreased further to 62.30 days in 2022 before dropping significantly to 50.10 days in 2023.
The decreasing trend from 2022 to 2023 suggests that the company has been able to manage its inventory more efficiently, potentially by improving inventory turnover or implementing better inventory management practices. A lower DOH indicates that the company is selling its inventory faster or carrying less excess inventory, which can lead to cost savings and improved cash flow.
Overall, the trend in Ball Corp.'s DOH indicates fluctuations in inventory management efficiency over the past five years, with a notable improvement from 2022 to 2023. Maintaining a balance between carrying enough inventory to meet demand without excessive stockpiling is crucial for optimizing operational and financial performance.
Peer comparison
Dec 31, 2023