Corning Incorporated (GLW)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.25 | 3.33 | 3.64 | 3.13 | 3.22 | |
| DOH | days | 112.40 | 109.47 | 100.41 | 116.52 | 113.39 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.25
= 112.40
Corning, Inc.'s Days of Inventory on Hand (DOH) has fluctuated over the past five years. In 2023, the company had inventory on hand for approximately 112.40 days, which was higher compared to the previous year's 109.47 days. The increase in DOH from 2022 to 2023 suggests that Corning, Inc. may be carrying more inventory relative to its sales, which could tie up more of its capital in inventory holdings.
Comparing the 2023 DOH to 2021, when it was 100.41 days, there has been a noticeable increase in inventory holding period. This rise may indicate challenges in managing inventory levels efficiently or slower inventory turnover for the company. Additionally, the DOH in 2023 was also higher than the 2020 figure of 114.50 days, suggesting that the company may have improved its inventory management efficiency slightly.
Though the DOH for 2023 was slightly higher than the 2019 DOH of 113.39 days, the differences are not significant. This stability in inventory holding period over the longer term might indicate that Corning, Inc. has been able to effectively manage its inventory levels, adjusting them to meet demand patterns and market conditions.
Overall, the increase in Days of Inventory on Hand from 2022 to 2023 should prompt further analysis to understand the reasons behind this change and to assess whether it aligns with the company's strategy and market conditions.
Peer comparison
Dec 31, 2023