Cleveland-Cliffs Inc (CLF)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.81 | 4.12 | 3.18 | 1.44 | 4.46 | |
| DOH | days | 75.89 | 88.70 | 114.95 | 253.53 | 81.81 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.81
= 75.89
Cleveland-Cliffs Inc's days of inventory on hand (DOH) have fluctuated over the past five years. The company managed its inventory more efficiently in 2023 compared to the prior year, with DOH decreasing to 79.01 days from 91.47 days in 2022. This signifies that the company took less time to sell its inventory and turned its inventory into sales faster, potentially leading to improved cash flow and reduced carrying costs.
In 2021, the DOH was 119.02 days, indicating a longer time to sell its inventory compared to 2023. The sharp decrease in DOH from 2021 to 2022 shows that the company made efforts to streamline inventory management practices during this period.
The significantly high DOH of 273.86 days in 2020 is a point of concern, suggesting that Cleveland-Cliffs Inc took much longer to sell its inventory that year. However, the DOH decreased substantially to 81.92 days in 2019, indicating that the company improved its inventory management practices that year.
Overall, the trend in Cleveland-Cliffs Inc's DOH indicates fluctuating inventory management efficiency over the past five years, with improvements seen in 2023 compared to the prior years. Efficient inventory management is crucial for companies to optimize their working capital and operational performance.
Peer comparison
Dec 31, 2023