California Resources Corp (CRC)

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 3.29 5.44 6.21 4.87 4.89 4.96 4.99 5.17 5.17 5.27 5.81 5.79 5.27 4.17 3.88 3.93 32.52 64.10 64.13 65.37
DOH days 110.98 67.10 58.74 74.93 74.66 73.62 73.21 70.57 70.65 69.24 62.85 63.09 69.30 87.60 94.09 92.82 11.22 5.69 5.69 5.58

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.29
= 110.98

The Days of Inventory on Hand (DOH) is a measure that indicates how many days, on average, a company holds its inventory before selling it. Analyzing California Resources Corp's DOH over the specified period, we observe fluctuations in the efficiency of inventory management.

From March 31, 2020, to December 31, 2021, the DOH remained relatively stable at around 5 to 11 days, suggesting efficient inventory turnover. However, a significant jump was noted in the following periods, with DOH sharply rising to 92.82 days by March 31, 2021, and peaking at 110.98 days by December 31, 2024. These elevated levels indicate a slowdown in inventory turnover, possibly due to increased inventory levels, changes in demand, or supply chain disruptions.

The subsequent quarters show a moderate decline in DOH, indicating improvements in inventory management efficiency compared to the peak levels. However, the DOH remains elevated compared to the initial periods, with values ranging between 58.74 to 74.93 days. California Resources Corp may need to focus on optimizing inventory levels, streamlining operations, and aligning production with demand to enhance efficiency and reduce holding costs associated with excessive inventory levels. Ongoing monitoring and actions to optimize inventory turnover will be crucial for improving the company's overall operational effectiveness and financial performance.