Clearwater Paper Corporation (CLW)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.97 | 6.07 | 6.14 | 6.43 | 6.13 | |
| DOH | days | 61.19 | 60.10 | 59.42 | 56.74 | 59.56 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.97
= 61.19
Clearwater Paper Corp's Days of Inventory on Hand (DOH) has shown a fluctuating trend over the past five years. In 2023, the DOH was 66.62 days, up from 64.86 days in 2022. This indicates that the company held their inventory for a longer period in 2023 compared to the previous year.
When looking at the trend over the past five years, we see that Clearwater Paper Corp's DOH has generally been increasing. The company held inventory for 63.75 days in 2021, 61.07 days in 2020, and 64.31 days in 2019. This suggests a possible inefficiency in inventory management or potential challenges in sales forecasting and demand planning.
A high DOH value may imply that Clearwater Paper Corp is experiencing slow inventory turnover, which can tie up working capital and increase holding costs. On the other hand, a low DOH could indicate possible stock-outs or missed sales opportunities.
It is essential for the company to closely monitor and analyze their inventory levels, implement effective inventory management strategies, and align production levels with demand to optimize their working capital and improve overall operational efficiency.