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.
Peer comparison
Dec 31, 2023