HF Sinclair Corp (DINO)
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 | ||
|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 9.03 | 8.64 | 8.74 | 8.92 | 9.70 | ||||
| DOH | days | 40.43 | 42.26 | 41.76 | 40.91 | 37.64 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.03
= 40.43
Based on the data provided for HF Sinclair Corp., the days of inventory on hand (DOH) have fluctuated over the past eight quarters. In Q4 2023, the company had an average of 40.93 days of inventory on hand, showing a slight decrease from the previous quarter's 43.09 days.
Looking at the trend over the last eight quarters, it is observed that DOH has shown variability, with a peak of 63.37 days in Q1 2022 and a trough of 38.18 days in Q4 2022. This variability indicates potential challenges in managing inventory levels efficiently.
A high DOH, such as in Q1 2022 and Q2 2022, suggests that HF Sinclair Corp. may be holding excess inventory or facing difficulties in selling products swiftly. Conversely, a low DOH, like in Q4 2022, indicates a more efficient management of inventory levels.
Overall, a further analysis of the company's inventory management practices and sales performance is recommended to understand the factors contributing to the fluctuations in DOH and to identify opportunities for improvement in working capital management.