Balchem Corporation (BCPC)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 4.72 5.66 5.53 6.10 6.79
DOH days 77.32 64.44 65.99 59.79 53.73

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.72
= 77.32

The days of inventory on hand (DOH) for Balchem Corporation has shown an increasing trend from 53.73 days as of December 31, 2020, to 59.79 days as of December 31, 2021, reaching 65.99 days by December 31, 2022. However, there was a slight decrease to 64.44 days by December 31, 2023, before significantly rising to 77.32 days by December 31, 2024.

This upward trend in the DOH indicates that Balchem Corporation is taking longer to sell its inventory, which could potentially signal inefficiencies in inventory management or challenges in demand forecasting. It is essential for the company to closely monitor and manage its inventory levels to avoid potential issues such as inventory obsolescence, carrying costs, and liquidity constraints. Further analysis of the underlying factors contributing to the increase in DOH may be necessary to address any potential risks and optimize the company's operational efficiency.