CVR Energy Inc (CVI)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		13.20	15.65	14.51	13.82	15.18
DOH	days	27.65	23.32	25.15	26.41	24.05

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.20
= 27.65

The days of inventory on hand (DOH) for CVR Energy Inc have shown fluctuations over the past five years. In 2023, the DOH increased to 31.44 days from 25.98 days in 2022, indicating that the company held its inventory for a longer period before selling it. This increase may suggest potential challenges in managing inventory levels efficiently or slower inventory turnover.

Comparing the 2023 DOH to previous years, it is higher than the 28.56 days in 2021 and 29.34 days in 2019, but lower than the 32.25 days in 2020. The variation in DOH across these years signifies fluctuations in the company's inventory management practices and effectiveness.

Overall, the rising DOH trend from 2022 to 2023 may warrant further investigation into inventory management strategies to optimize working capital and cash flow, as a higher DOH can tie up capital in unsold inventory and may indicate potential inefficiencies in production or sales processes. Understanding the reasons behind these fluctuations can help CVR Energy Inc improve operational efficiency and profitability in the long run.