Chord Energy Corp (CHRD)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		41.84	33.89	34.12	31.42	24.85
DOH	days	8.72	10.77	10.70	11.62	14.69

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 41.84
= 8.72

Chord Energy Corp has shown a consistent improvement in its days of inventory on hand (DOH) metric over the past five years. The company's DOH decreased from 14.69 days as of December 31, 2020, to 8.72 days as of December 31, 2024. This downward trend indicates that Chord Energy Corp has been more efficient in managing its inventory levels and turning over its inventory into sales.

A decreasing DOH is generally viewed positively as it suggests that the company is holding less inventory for a shorter period, which can lead to lower carrying costs, reduced risk of obsolescence, and improved cash flow. Chord Energy Corp's decreasing DOH reflects a potentially more streamlined and effective inventory management process.

Overall, the downward trend in Chord Energy Corp's days of inventory on hand metric demonstrates an improvement in the company's inventory management efficiency over the years, which could positively impact its financial performance and profitability.