Clean Harbors Inc (CLH)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 13.72 | 13.03 | 12.73 | 11.96 | 13.54 | |
| DOH | days | 26.60 | 28.01 | 28.67 | 30.53 | 26.95 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.72
= 26.60
The days of inventory on hand (DOH) for Clean Harbors, Inc. have exhibited a fluctuating trend over the past five years. The company's DOH decreased from 37.65 days in 2020 to 31.91 days in 2023, indicating a more efficient management of inventory during this period. However, there was a slight increase in 2021 and 2022, reaching 35.06 days and 33.47 days, respectively.
The downward trend in 2023 suggests that Clean Harbors, Inc. is improving its inventory management practices, potentially reducing excess inventory levels or streamlining its supply chain. Lower DOH typically signals that the company is selling its products more quickly or managing its inventory more effectively.
It is essential for Clean Harbors, Inc. to continue monitoring its DOH and strive for an optimal balance to avoid stockouts or overstocking issues, which could impact the company's profitability and operational efficiency. Overall, the decreasing trend in DOH reflects positive developments in the management of Clean Harbors, Inc.'s inventory over the past year.
Peer comparison
Dec 31, 2023