Dana Inc (DAN)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		6.13	6.29	5.51	6.11	6.99
DOH	days	59.55	58.05	66.30	59.69	52.25

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.13
= 59.55

Dana Inc's days of inventory on hand (DOH) has shown fluctuations over the past five years. In 2023, the company's DOH was 63.36 days, which is slightly higher than the previous year but lower than the levels seen in 2021 and 2020. This indicates that the company is holding its inventory for a slightly longer period in 2023 compared to 2022.

The increase in DOH in 2023 may suggest that Dana Inc is carrying more inventory relative to its sales, which could tie up more of its capital in unsold goods. This may be due to factors such as changes in demand, production levels, or inventory management practices.

Comparing the 2023 DOH to 2019, there has been an overall increase over the five-year period. This trend indicates that Dana Inc may be facing challenges in optimizing its inventory turnover efficiency. It is essential for the company to monitor its inventory levels closely and make adjustments as needed to avoid potential liquidity issues and obsolescence risks associated with excess inventory.

Overall, Dana Inc's DOH metric provides valuable insights into the company's inventory management efficiency and can serve as a basis for further analysis and potential operational improvements to enhance profitability and financial performance.