Core Natural Resources, Inc. (CNR)
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 | 5.17 | 0.73 | 0.82 | 4.89 | 6.07 | 5.07 | 4.68 | 4.38 | 5.83 | 5.01 | 0.52 | 0.41 | 0.44 | 0.51 | 2.13 | 2.31 | 2.58 | 2.69 | 0.56 | 0.49 | |
| DOH | days | 70.57 | 502.04 | 443.49 | 74.67 | 60.10 | 71.95 | 77.99 | 83.25 | 62.58 | 72.81 | 705.88 | 888.73 | 832.17 | 709.88 | 171.44 | 157.99 | 141.70 | 135.87 | 648.83 | 738.78 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.17
= 70.57
The days of inventory on hand (DOH) for Core Natural Resources, Inc. fluctuated significantly during the period under review. It started at a high level of 738.78 days on March 31, 2020, indicating that, on average, it took the company over two years to sell its inventory. Over the next few quarters, the DOH decreased gradually to reach its lowest point of 60.10 days on December 31, 2023, suggesting that the company managed its inventory more efficiently during this period.
However, there was an unexpected increase in DOH on March 31, 2024, jumping back up to 74.67 days. Subsequently, the DOH spiked tremendously to 443.49 days on June 30, 2024, reflecting a significant slowdown in inventory turnover. This trend continued in the following quarters, with DOH remaining elevated above 400 days until September 30, 2024.
The sudden increase in DOH in the latter part of the period may indicate issues such as overstocking, slowing sales, or disruptions in the supply chain. This significant rise in DOH could lead to increased storage costs, obsolescence risk, and potential cash flow challenges due to tied-up capital in inventory. Core Natural Resources, Inc. may need to reassess its inventory management strategies to address these concerns and improve its operational efficiency.
Peer comparison
Dec 31, 2024