Eastman Chemical Company (EMN)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.57 | 4.25 | 4.46 | 5.30 | 4.71 | |
| DOH | days | 102.32 | 85.93 | 81.88 | 68.83 | 77.46 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.57
= 102.32
The days of inventory on hand (DOH) for Eastman Chemical Company have fluctuated over the analyzed period. From December 31, 2020, at 77.46 days, the DOH decreased to 68.83 days by December 31, 2021. However, the trend reversed as the DOH increased to 81.88 days by December 31, 2022, and further to 85.93 days by December 31, 2023. The most significant increase was seen from 2023 to 2024, with the DOH rising to 102.32 days.
The rising DOH indicates that Eastman Chemical Company is carrying inventory for a longer period before selling it, which may suggest potential inefficiencies in inventory management or slowing sales. This trend could lead to increased carrying costs, potential obsolescence risks, or cash flow constraints if inventory is not managed effectively.
Further analysis of the underlying factors driving the increase in inventory days may be warranted to assess the company's supply chain, demand forecasting, production processes, or sales strategies. Adjustments or improvements in these areas could help optimize inventory levels and enhance operational efficiency.
Peer comparison
Dec 31, 2024