CF Industries Holdings Inc (CF)
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 | 13.67 | 13.74 | 15.29 | 12.33 | 11.23 | 10.72 | 9.81 | 9.35 | 10.17 | 8.82 | 12.17 | 8.75 | 11.58 | 10.82 | 11.97 | 8.98 | 9.73 | 11.77 | 12.21 | 7.91 | |
| DOH | days | 26.71 | 26.57 | 23.87 | 29.59 | 32.49 | 34.06 | 37.21 | 39.04 | 35.88 | 41.37 | 29.99 | 41.73 | 31.52 | 33.75 | 30.48 | 40.66 | 37.50 | 31.01 | 29.89 | 46.17 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.67
= 26.71
Based on the data provided, CF Industries Holdings Inc had varying levels of days of inventory on hand (DOH) over the past eight quarters. The DOH ranged from a low of 23.87 days in Q2 2023 to a high of 39.04 days in Q1 2022.
The trend in DOH indicates that the company was able to reduce its inventory holding period from Q1 2022 to Q2 2023, suggesting improved efficiency in managing inventory levels. A lower DOH indicates that the company is selling its inventory at a faster rate, which could lead to lower storage costs and a more streamlined supply chain.
On the other hand, the increase in DOH from Q2 2023 to Q1 2022 could indicate a potential buildup of inventory, which may be due to various factors such as changes in demand, production issues, or supply chain disruptions. A higher DOH could tie up working capital and increase the risk of inventory obsolescence.
It is essential for CF Industries Holdings Inc to closely monitor its inventory levels and strive to strike a balance between maintaining adequate inventory to meet customer demand while avoiding excess inventory buildup. Regularly reviewing and optimizing inventory management processes can help the company maintain healthy levels of DOH and enhance overall operational efficiency.
Peer comparison
Dec 31, 2023