Cleveland-Cliffs Inc (CLF)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.91 | 4.81 | 4.12 | 3.18 | 1.44 | |
| DOH | days | 93.46 | 75.89 | 88.70 | 114.95 | 253.53 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.91
= 93.46
Cleveland-Cliffs Inc's days of inventory on hand (DOH) shows a decreasing trend over the past few years. As of December 31, 2020, the company held inventory for an average of 253.53 days, indicating a relatively high level of inventory relative to its sales. However, by December 31, 2024, this figure had decreased significantly to 93.46 days.
The declining trend in DOH suggests that Cleveland-Cliffs has been more efficient in managing its inventory levels. A lower DOH indicates that the company is selling its inventory more quickly, which could free up cash flow and reduce the risk of inventory obsolescence.
It is important for Cleveland-Cliffs to continue monitoring its inventory levels closely to ensure they are optimized for current market demands. By maintaining a balanced inventory level, the company can enhance its working capital management and overall operational efficiency.
Peer comparison
Dec 31, 2024