ChampionX Corporation (CHX)
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 | 5.02 | 4.52 | 4.74 | 4.92 | 5.36 | 4.94 | 4.32 | 3.94 | 4.29 | 4.53 | 4.57 | 4.21 | 3.47 | 2.39 | 1.53 | 3.56 | 3.57 | 3.58 | 3.44 | 3.48 | |
| DOH | days | 72.70 | 80.78 | 77.05 | 74.13 | 68.11 | 73.86 | 84.59 | 92.53 | 84.99 | 80.53 | 79.87 | 86.61 | 105.30 | 152.79 | 239.23 | 102.66 | 102.29 | 102.04 | 106.18 | 105.03 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.02
= 72.70
To analyze ChampionX Corp.'s days of inventory on hand (DOH) over the past eight quarters, we observe a fluctuating trend. The DOH ranged from 68.11 days to 92.53 days. In Q1 2022, the company held inventory for an average of 92.53 days, which was the highest in the period under consideration. Subsequently, there was a decreasing trend until Q4 2022, where the DOH reached its lowest point of 68.11 days.
However, the trend reversed in Q1 2023, with the DOH increasing to 74.13 days and reaching a peak of 80.78 days in Q3 2023. This was followed by a slight decrease in Q4 2023 to 72.70 days. The fluctuation in DOH indicates variability in inventory management efficiency over the quarters.
A high DOH suggests that the company may be holding excess inventory, leading to increased carrying costs and potential obsolescence risks. Conversely, a low DOH may indicate potential stockouts and lost sales opportunities.
Further analysis and comparison with industry benchmarks are recommended to assess the effectiveness of ChampionX Corp.'s inventory management practices and identify areas for improvement.
Peer comparison
Dec 31, 2023