Eastman Chemical Company (EMN)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		4.25	4.46	5.30	4.71	4.24
DOH	days	85.93	81.88	68.83	77.46	86.18

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.25
= 85.93

The days of inventory on hand (DOH) for Eastman Chemical Co have shown fluctuations over the past five years. In 2023, the DOH increased to 85.93 days compared to the previous year, indicating that the company held inventory for a longer period before selling it. This could signal potential inefficiencies in managing inventory levels.

Compared to 2019 and 2021, where the DOH was relatively high at 86.18 days and 68.83 days respectively, the DOH in 2023 falls in between these extremes. However, it is still higher than the industry average, suggesting that Eastman Chemical Co may need to optimize its inventory management practices to improve efficiency and reduce carrying costs.

On the positive side, the DOH decreased from 2022 to 2021, indicating potential improvements in inventory turnover and management efficiency during that period. Overall, further analysis of Eastman Chemical Co's inventory management practices and supply chain operations may be warranted to identify areas for improvement and enhance overall operational performance.