FMC Corporation (FMC)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 2.16 1.54 2.10 2.04 2.36
DOH days 168.87 237.02 173.45 178.56 154.39

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.16
= 168.87

FMC Corporation's days of inventory on hand (DOH) has shown variability over the past five years. The trend indicates an increase in the days of inventory on hand from 154.39 days as of December 31, 2020, to 178.56 days as of December 31, 2021. Subsequently, there was a slight decrease to 173.45 days as of December 31, 2022. However, it surged significantly to 237.02 days as of December 31, 2023, before dropping to 168.87 days as of December 31, 2024.

The fluctuations in the DOH metric suggest potential challenges in managing inventory efficiently. A higher DOH implies that the company is holding onto inventory for a longer period, which can tie up working capital and increase carrying costs. Conversely, a lower DOH may indicate difficulties in meeting demand or stockouts.

FMC Corporation may need to review its inventory management practices to strike a balance between ensuring product availability and minimizing holding costs. Further analysis of the underlying factors contributing to these fluctuations in DOH can provide insights into inventory management effectiveness and operational efficiency.