HF Sinclair Corp (DINO)

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		9.49	10.26	8.89	8.62	9.18	8.70	8.82	9.01	9.76	8.46	6.75	5.92	7.43	6.97	6.85	5.72	8.32	9.71	10.37	15.49
DOH	days	38.47	35.59	41.08	42.34	39.76	41.93	41.37	40.51	37.38	43.14	54.10	61.67	49.15	52.40	53.32	63.82	43.89	37.59	35.19	23.57

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.49
= 38.47

HF Sinclair Corp's days of inventory on hand (DOH) has shown some variability over the past few years.

The DOH ratio measures the number of days a company holds inventory before it is sold. From March 31, 2020, to September 30, 2022, the DOH fluctuated between 23.57 days and 43.14 days, indicating some level of consistency in inventory management during this period.

However, from March 31, 2023, the DOH started to increase, reaching a peak of 63.82 days on March 31, 2021. This significant increase in DOH suggests that HF Sinclair Corp is taking longer to convert inventory into sales, potentially tying up more capital in inventory and facing challenges in managing inventory levels efficiently.

Subsequently, the company managed to bring down the DOH to around 35-45 days from June 30, 2022, to March 31, 2024, indicating some improvement in inventory management practices. It's worth noting that a lower DOH is generally preferred as it signifies a quicker turnover of inventory and better liquidity.

Overall, HF Sinclair Corp should continue monitoring and analyzing its inventory management practices to optimize working capital and improve operational efficiency.