Cleveland-Cliffs Inc (CLF)
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 | 4.81 | 4.67 | 4.57 | 4.38 | 4.11 | 3.62 | 3.28 | 3.14 | 3.17 | 3.16 | 2.69 | 2.26 | 1.44 | 2.07 | 1.31 | 0.80 | 4.46 | 6.91 | 7.22 | 4.89 | |
| DOH | days | 75.93 | 78.22 | 79.92 | 83.33 | 88.75 | 100.92 | 111.34 | 116.31 | 115.02 | 115.56 | 135.58 | 161.18 | 253.74 | 175.99 | 279.10 | 456.39 | 81.82 | 52.85 | 50.57 | 74.58 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.81
= 75.93
The days of inventory on hand (DOH) for Cleveland-Cliffs Inc have shown a decreasing trend over the past eight quarters, indicating improved efficiency in managing its inventory levels. In Q1 2022, the company had the highest DOH at 120.45 days, which then gradually decreased to 79.01 days in Q4 2023. This signifies that the company has been able to turn over its inventory more quickly over time.
The declining trend in DOH suggests that Cleveland-Cliffs has been successful in optimizing its inventory management practices, which could lead to lower holding costs, reduced risk of obsolescence, and improved cash flow. However, it is important for the company to monitor its inventory levels closely to ensure that they are aligned with demand fluctuations and operational requirements.
Overall, the improving trend in DOH reflects positively on Cleveland-Cliffs' operational efficiency and effectiveness in controlling its inventory levels, which can contribute to enhancing overall financial performance and profitability.
Peer comparison
Dec 31, 2023