Cleveland-Cliffs Inc (CLF)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.90 | 4.81 | 4.97 | 4.79 | 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 | |
| DOH | days | 93.58 | 75.81 | 73.37 | 76.18 | 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 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.90
= 93.58
The days of inventory on hand (DOH) for Cleveland-Cliffs Inc have shown a decreasing trend from 456.39 days as of March 31, 2020, to 93.58 days as of December 31, 2024. This indicates that the company has been managing its inventory more efficiently over the years.
A higher DOH implies that the company may be holding excessive inventory, which ties up working capital and may lead to higher storage costs and potential obsolescence. Conversely, a lower DOH signifies that the company is selling its inventory more quickly, thereby reducing holding costs and improving cash flow.
The significant reduction in DOH over the observed period suggests that Cleveland-Cliffs Inc has improved its inventory management practices, potentially through better demand forecasting, streamlined supply chain processes, or more effective inventory control systems. This efficiency can lead to improved profitability and liquidity for the company.
It is important to monitor the DOH in conjunction with other financial metrics to gain a comprehensive understanding of the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2024