CF Industries Holdings Inc (CF)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 13.67 | 11.23 | 10.17 | 11.58 | 9.73 | |
| DOH | days | 26.71 | 32.49 | 35.88 | 31.52 | 37.50 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.67
= 26.71
The days of inventory on hand (DOH) for CF Industries Holdings Inc have shown a decreasing trend over the past five years. In 2023, the company had 26.71 days of inventory on hand, which decreased from 32.49 days in 2022, 35.88 days in 2021, 31.52 days in 2020, and 37.50 days in 2019.
The decreasing trend in DOH indicates that the company has been more efficient in managing its inventory levels over the years. This could be attributed to better inventory management practices, streamlined operations, or improved demand forecasting capabilities.
A lower DOH signifies that the company is holding less inventory for a shorter period, which can lead to lower carrying costs, reduced risk of obsolete inventory, and potentially higher inventory turnover. However, it is important to strike a balance between reducing inventory levels and ensuring that sufficient inventory is available to meet customer demand.
Overall, the decreasing trend in CF Industries Holdings Inc's DOH reflects positively on the company's inventory management efficiency and operational effectiveness.
Peer comparison
Dec 31, 2023