ConocoPhillips (COP)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		21.21	21.22	39.77	25.71	17.91
DOH	days	17.21	17.20	9.18	14.20	20.38

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 21.21
= 17.21

The days of inventory on hand (DOH) is a financial ratio that indicates how many days, on average, a company holds onto its inventory before selling it. A lower DOH value is generally favorable as it suggests efficient inventory management.

For ConocoPhillips, the DOH has shown a decreasing trend over the past years, from 20.38 days on December 31, 2020, to 14.20 days on December 31, 2021, and further down to 9.18 days on December 31, 2022. This decrease indicates that ConocoPhillips has been able to manage its inventory more efficiently, potentially reducing storage costs and minimizing the risk of inventory obsolescence.

However, there was a slight uptick in the DOH to 17.20 days on December 31, 2023, and a similar value of 17.21 days on December 31, 2024. This increase may suggest a slowdown in inventory turnover or challenges in managing inventory levels effectively during these periods.

Overall, ConocoPhillips' DOH analysis indicates a generally positive trend towards improving inventory management efficiency, with some fluctuations in recent years that may require further monitoring and potential adjustments to optimize inventory levels.