Cabot Corporation (CBT)
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 | 4.94 | 5.29 | 5.48 | 5.46 | 4.90 | 5.17 | 4.92 | 4.83 | 5.18 | 4.99 | 4.94 | 4.94 | 5.16 | 5.89 | 5.72 | 5.28 | 5.39 | 5.69 | 5.09 | 4.72 | |
| DOH | days | 73.89 | 69.06 | 66.61 | 66.84 | 74.48 | 70.54 | 74.12 | 75.53 | 70.50 | 73.14 | 73.88 | 73.95 | 70.68 | 61.98 | 63.81 | 69.19 | 67.69 | 64.14 | 71.75 | 77.27 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.94
= 73.89
To analyze Cabot Corp.'s days of inventory on hand (DOH) over the past eight quarters, it is evident that there has been variability in this ratio. The DOH fluctuated between a high of 75.53 days in Q2 2022 and a low of 66.61 days in Q3 2023. The average DOH over this period was approximately 70.36 days.
A decreasing trend can be observed from Q1 2023 to Q3 2023, indicating that Cabot Corp. managed its inventory more efficiently during this period. However, there was a slight increase in DOH in Q4 2023 compared to the previous quarter.
It is important to note that inventory management is crucial for a company like Cabot Corp., as it impacts working capital and profitability. A lower DOH signifies better efficiency in managing inventory levels, whereas a higher DOH may suggest slower inventory turnover and potential issues such as obsolete inventory or overstocking.
Further analysis of the reasons behind fluctuations in DOH, such as changes in demand, production delays, or supply chain disruptions, would provide deeper insights into Cabot Corp.'s inventory management practices and overall financial performance.
Peer comparison
Dec 31, 2023