Clean Harbors Inc (CLH)

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		12.71	12.70	12.77	12.83	13.71	14.28	13.49	13.45	13.02	14.00	13.86	13.24	12.72	12.67	12.72	11.74	11.94	29.21	30.68	32.83
DOH	days	28.71	28.73	28.59	28.46	26.63	25.56	27.06	27.15	28.04	26.08	26.33	27.56	28.70	28.82	28.69	31.08	30.57	12.49	11.90	11.12

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.71
= 28.71

Clean Harbors Inc's days of inventory on hand (DOH) has shown fluctuation over the past few years, ranging from a low of 11.12 days to a high of 31.08 days. A lower DOH indicates that the company is selling inventory quickly, while a higher DOH may signify inefficiencies in inventory management or declining sales.

The trend indicates that DOH initially increased significantly from 11.12 days on March 31, 2020, to 31.08 days by March 31, 2021. This steep rise may indicate a buildup of excess inventory relative to sales. However, from March 2021 to September 2023, DOH remained relatively stable around the 28-day mark, suggesting a better balance between inventory levels and sales.

From September 2023 to December 2024, there was a slight decrease in DOH, indicating an improvement in managing inventory levels. This reduction could be attributed to efforts to streamline operations, enhance efficiency, or respond to changes in customer demand.

Overall, Clean Harbors Inc should continue monitoring its inventory levels closely to ensure they align with sales volumes and market demands. Maintaining an optimal DOH can help the company avoid excess inventory costs while ensuring products are readily available to meet customer needs.