Element Solutions Inc (ESI)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.77 | 4.73 | 5.49 | 5.24 | 5.26 | |
| DOH | days | 63.23 | 77.12 | 66.45 | 69.60 | 69.43 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.77
= 63.23
The data indicates that Element Solutions Inc’s days of inventory on hand (DOH) exhibited some fluctuations over the observed period. As of December 31, 2020, the company held inventory for approximately 69.43 days. This level remained relatively stable through December 31, 2021, with a slight increase to 69.60 days. Moving into 2022, a modest decline was observed, bringing the DOH down to approximately 66.45 days, which suggests an improvement in inventory management efficiency during that year.
However, the trend shifted notably in 2023, with the DOH increasing to 77.12 days, indicating a significant elongation in inventory holding periods. This rise could reflect challenges such as supply chain disruptions, shifts in product demand, or strategic changes in inventory policy. The subsequent data for 2024 shows a marked reduction to 63.23 days, highlighting a reversal of the previous year's increase and signaling a potential normalization or improvement in inventory turnover.
Overall, the fluctuation in DOH suggests that Element Solutions Inc experienced periods of both efficiency and inefficiency in managing inventory. The peak in 2023 may be a point of concern regarding excess inventory levels or slower sales, while the decrease in 2024 points toward efforts to optimize inventory management and reduce holding periods. Continuous monitoring of these trends is essential to assess the company’s operational efficiency and inventory control strategies.
Peer comparison
Dec 31, 2024