Balchem Corporation (BCPC)

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 4.72 5.21 5.26 5.61 5.66 5.42 5.23 5.32 5.53 4.64 4.32 5.41 6.10 6.48 6.54 6.33 6.79 6.04 5.57 5.33
DOH days 77.32 70.05 69.35 65.07 64.44 67.35 69.84 68.59 65.99 78.67 84.53 67.49 59.79 56.35 55.79 57.66 53.73 60.38 65.58 68.47

December 31, 2024 calculation

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

The days of inventory on hand (DOH) for Balchem Corporation have shown fluctuations over the past few years. The DOH decreased from 68.47 days on March 31, 2020, to 53.73 days on December 31, 2020, indicating a more efficient management of inventory during that period. However, there was an increase in DOH to 84.53 days on June 30, 2022, suggesting a potential inventory management challenge.

The company managed to bring down the DOH to 64.44 days by December 31, 2023, but it increased slightly to 77.32 days by December 31, 2024. This rise in DOH could indicate slower inventory turnover or possible overstocking of inventory during that period.

Overall, Balchem Corporation should continue monitoring its DOH to ensure optimal inventory management practices. A high DOH can tie up capital in inventory, while a low DOH may lead to stockouts and lost sales. Striking a balance between these factors is crucial for the company's operational efficiency and financial performance.