Dow Inc (DOW)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		6.97	7.24	6.28	5.85	5.90
DOH	days	52.39	50.43	58.11	62.40	61.87

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.97
= 52.39

To analyze Dow Inc's days of inventory on hand (DOH), we can observe a trend over the past five years. The DOH represents the average number of days it takes for a company to sell its inventory. A lower DOH is generally preferable as it indicates more efficient inventory management.

From 2019 to 2020, there was a slight increase in DOH from 61.87 days to 62.40 days, suggesting a marginally less efficient inventory turnover. However, in the subsequent years, there was an improvement in inventory management as the DOH decreased to 60.89 days in 2021, further dropping to 52.77 days in 2022, and then increasing slightly to 55.80 days in 2023.

The fluctuation in DOH indicates that Dow Inc has made efforts to manage its inventory efficiently, as seen by the decreases in 2021 and 2022. However, the slight increase in 2023 warrants further investigation to understand the impact on working capital and operational efficiency.

Overall, while there has been some volatility, the downward trend in recent years suggests that the company has been able to better optimize its inventory levels and improve its inventory turnover, which can positively impact liquidity and profitability.