Eastman Chemical Company (EMN)

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		3.56	3.75	4.65	5.00	5.31	5.34	3.97	4.20	4.46	4.34	4.64	4.98	5.30	4.60	4.71	4.42	4.71	4.89	4.70	4.16
DOH	days	102.65	97.42	78.44	73.04	68.67	68.38	91.86	86.93	81.88	84.01	78.68	73.23	68.83	79.32	77.56	82.67	77.46	74.61	77.58	87.80

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.56
= 102.65

The Days of Inventory on Hand (DOH) is a key ratio that helps evaluate how efficiently a company is managing its inventory. For Eastman Chemical Company, the trend in the DOH ratio over the last few years has been somewhat fluctuating:

- The DOH stood at 87.80 days as of March 31, 2020, and gradually decreased to 68.83 days by December 31, 2021. This decline indicates that Eastman was able to manage its inventory more efficiently over this period.
- However, there was a slight increase in DOH to 91.86 days by June 30, 2023, followed by a significant drop to 68.38 days by September 30, 2023. This fluctuation suggests some instability in inventory management during these quarters.
- The DOH ratio increased notably to 102.65 days by December 31, 2024, implying that Eastman may have been holding onto inventory for a longer period, which could lead to higher carrying costs and possibly obsolete inventory issues.

Overall, while there have been periods of improvement in managing inventory efficiently, the recent increase in DOH indicates a potential need for Eastman Chemical Company to reevaluate its inventory management strategies to ensure optimal levels that align with future business needs and market demand.