ConocoPhillips (COP)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		16.57	28.76	16.59	9.72	12.89
DOH	days	22.03	12.69	22.00	37.56	28.31

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 16.57
= 22.03

The days of inventory on hand (DOH) for Conoco Phillips has fluctuated over the past five years, indicating changes in inventory management efficiency.

In 2023, the company had 23.22 days of inventory on hand, which is higher compared to the previous year. This increase may suggest that Conoco Phillips had a higher level of inventory relative to its sales during the year.

In 2022, the DOH was 13.10 days, showing a significant improvement in inventory management efficiency compared to 2021. The company was able to reduce the number of days it held inventory, which may indicate better inventory turnover and cost control.

In 2021, the DOH was 24.28 days, which was higher compared to 2020. This increase suggests that Conoco Phillips held inventory for a longer period in 2021, possibly due to changes in production levels or supply chain disruptions.

In 2020, the company had 45.27 days of inventory on hand, indicating a significant increase in inventory holding period compared to the previous year. This could be attributed to various factors such as oversupply, decreased demand, or economic uncertainties.

In 2019, the DOH was 31.62 days, representing a moderate decrease in inventory holding period compared to 2020. This improvement may indicate better inventory management practices implemented by Conoco Phillips during that year.

Overall, Conoco Phillips should continue to monitor its inventory levels and strive to strike a balance between maintaining optimal inventory levels to meet demand and avoiding excess inventory holding costs to enhance its operational efficiency and financial performance.