Corteva Inc (CTVA)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.00 | 2.10 | 2.54 | 2.51 | 2.45 | |
| DOH | days | 182.74 | 173.70 | 143.76 | 145.65 | 148.76 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.00
= 182.74
The days of inventory on hand (DOH) for Corteva Inc have exhibited a fluctuating trend over the past five years. In 2023, the DOH increased to 253.84 days from 238.22 days in 2022, indicating that the company held its inventory for a longer period. This may suggest a potential inefficiency in managing inventory levels or slower inventory turnover during the period.
Comparing to the earlier years, the DOH was higher in 2023 than in 2021, 2020, and 2019, implying a potential deterioration in inventory management efficiency. However, the DOH was lower in 2023 compared to 2021, indicating some improvement in inventory turnover efficiency.
Overall, a high DOH level may tie up a significant amount of capital in inventory and increase holding costs, affecting liquidity and profitability. Corteva Inc may need to review its inventory management practices to optimize inventory levels and improve operational efficiency.
Peer comparison
Dec 31, 2023