FMC Corporation (FMC)
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 | 2.16 | 1.87 | 1.76 | 1.55 | 1.54 | 1.44 | 1.53 | 1.81 | 2.10 | 1.93 | 1.96 | 1.87 | 2.04 | 1.88 | 1.90 | 2.06 | 2.36 | 2.23 | 2.23 | 2.42 | |
DOH | days | 169.19 | 195.20 | 207.46 | 235.57 | 237.02 | 253.14 | 237.80 | 201.56 | 173.45 | 189.33 | 186.09 | 195.60 | 178.56 | 194.26 | 191.67 | 177.18 | 154.39 | 163.43 | 163.33 | 151.09 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.16
= 169.19
The days of inventory on hand (DOH) for FMC Corporation have shown fluctuations over the years based on the data provided. The trend indicates that the company held inventory for an average of around 170 days from 2020 to 2024. The DOH increased steadily from 151.09 days on March 31, 2020, to a peak of 253.14 days on September 30, 2023, before declining to 169.19 days on December 31, 2024.
Higher DOH values such as those seen in the third quarter of 2023 indicate a longer period of time that FMC Corporation takes to sell its inventory. This could be due to factors such as overstocking, changing customer demand, or difficulties in managing inventory turnover efficiently. On the other hand, lower DOH values, witnessed towards the end of 2024, suggest that the company may have improved its inventory management practices, resulting in a shorter time period for inventory turnover.
It is important for FMC Corporation to strike a balance in managing its inventory levels to ensure that it meets customer demand while also optimizing its working capital and operational efficiency. Monitoring DOH trends over time can help the company assess the effectiveness of its inventory management strategies and make informed decisions to improve profitability and financial performance.
Peer comparison
Dec 31, 2024