Dow Inc (DOW)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		6.18	6.97	7.24	6.28	5.85
DOH	days	59.02	52.39	50.43	58.11	62.40

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.18
= 59.02

The days of inventory on hand (DOH) for Dow Inc have shown varying trends over the years. As of December 31, 2020, the DOH was at 62.40 days, indicating that the company held inventory for approximately 2 months before selling it.

Over the next few years, there was a noticeable decline in the DOH, reaching 58.11 days on December 31, 2021, and further decreasing to 50.43 days by December 31, 2022. This downward trend suggests that Dow Inc was managing its inventory more efficiently, possibly through better inventory control or demand forecasting.

However, by December 31, 2023, the DOH slightly increased to 52.39 days before rising again to 59.02 days by December 31, 2024. This increase in DOH may indicate a buildup of inventory relative to sales, which could lead to holding excess inventory and tying up capital.

In conclusion, Dow Inc's days of inventory on hand have fluctuated over the years, showing both improvements and setbacks in managing inventory levels. It's important for the company to closely monitor and optimize its inventory management to ensure efficient operations and utilization of resources.