ConocoPhillips (COP)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		16.57	19.80	24.21	27.36	28.76	27.39	23.02	18.90	16.59	14.82	11.58	10.33	9.72	9.37	10.80	16.73	12.49	14.51	13.53	15.54
DOH	days	22.03	18.44	15.08	13.34	12.69	13.32	15.86	19.31	22.00	24.64	31.53	35.33	37.56	38.94	33.81	21.82	29.23	25.15	26.98	23.49

December 31, 2023 calculation

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

Conoco Phillips' days of inventory on hand (DOH) has exhibited fluctuations over the past eight quarters. The Q4 2023 DOH of 23.22 days indicates that the company held inventory for a longer period compared to the previous quarters. This may suggest potential concerns regarding inventory management efficiency or changes in the company's inventory policies.

The trend from Q1 2022 to Q3 2023 shows a declining DOH, which could be interpreted positively as the company improved its inventory turnover and reduced holding costs. However, the significant increase in Q4 2023 raises questions about potential shifts in demand, production issues, or supply chain disruptions impacting inventory levels.

Comparing the current DOH to the same period in the previous year, there is a noticeable increase from Q4 2022 to Q4 2023. This change may prompt further investigation into the underlying reasons behind the extended inventory holding period and its implications on Conoco Phillips' working capital management and profitability.

Analyzing Conoco Phillips' DOH provides insights into its inventory efficiency and operational performance, highlighting areas where the company may need to focus its attention to optimize working capital utilization and streamline inventory processes for future sustainability and competitiveness in the market.