FMC Corporation (FMC)

Days of inventory on hand (DOH)

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Inventory turnover 2.07 2.62 1.89 2.36 2.48
DOH days 176.20 139.19 193.32 154.39 146.94

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.07
= 176.20

To analyze FMC Corp.'s days of inventory on hand (DOH) over the past five years, we observe a fluctuating trend. The DOH increased from 146.94 days in 2019 to 178.56 days in 2021, reflecting a rise in the number of days it takes the company to sell its inventory. Subsequently, there was a slight decline to 173.45 days in 2022, indicating an improvement in inventory management. However, by the end of 2023, the DOH had increased significantly to 237.02 days, signaling a potential inefficiency in inventory turnover.

The upward trend in recent years may suggest challenges in managing inventory levels effectively, potentially leading to increased carrying costs, risk of obsolescence, and tying up working capital. Further investigation into the reasons behind the prolonged holding of inventory may be necessary to address potential inefficiencies and optimize working capital utilization.