FMC Corporation (FMC)

Days of inventory on hand (DOH)

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 2.07 1.86 1.95 2.14 2.36 2.04 1.96 1.87 1.89 1.88 1.90 2.06 2.36 2.23 2.23 2.42 2.48 2.14 2.11 2.15
DOH days 176.20 195.76 187.62 170.52 154.47 178.81 186.09 195.60 193.32 194.26 191.67 177.18 154.39 163.43 163.33 151.09 146.94 170.95 172.60 169.58

December 31, 2023 calculation

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

To thoroughly analyze FMC Corp.'s days of inventory on hand (DOH) over the past eight quarters, it is observed that the DOH fluctuated within a range of 173.45 days to 253.14 days.

The trend indicates an initial decreasing pattern from Q4 2022 (173.45 days) to Q1 2023 (201.56 days) followed by a slight increase in Q2 2023 (237.80 days) before peaking in Q3 2023 (253.14 days).

The DOH metric measures how many days it takes for a company to sell its entire inventory. A high DOH suggests slower inventory turnover and potential excess stock, tying up working capital and risking obsolescence. Conversely, a low DOH signals efficient inventory management.

FMC Corp. experienced a notable increase in DOH in Q3 2023 compared to the previous quarters, signifying a potential buildup of inventory relative to sales. It would be crucial to monitor future trends in the DOH to ensure optimal inventory management practices and efficient capital utilization.