Chart Industries Inc (GTLS)
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 | 5.27 | 4.22 | 3.40 | 2.85 | 4.24 | 4.09 | 3.89 | 3.80 | 3.92 | 3.48 | 3.60 | 3.94 | 4.61 | 4.98 | 5.09 | 5.40 | 6.00 | 5.07 | 4.83 | 4.75 | |
| DOH | days | 69.24 | 86.58 | 107.39 | 128.12 | 86.05 | 89.14 | 93.87 | 96.02 | 93.19 | 104.98 | 101.38 | 92.67 | 79.25 | 73.32 | 71.72 | 67.59 | 60.81 | 72.01 | 75.51 | 76.82 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.27
= 69.24
To analyze Chart Industries Inc's days of inventory on hand (DOH) over the past eight quarters, we observe a fluctuating trend. The DOH metric measures how many days it takes for the company to sell its current inventory, with lower values indicating more efficient inventory management.
In Q1 2022, the company had a DOH of 120.81 days, which decreased to 117.20 days in Q2 2022 before rising to 110.15 days in Q3 2022. However, in Q4 2022, the DOH increased to 108.41 days. The trend reversed in Q1 2023, with the DOH increasing significantly to 166.28 days, signifying a potential buildup of inventory.
In the following quarters, there was a gradual decline in DOH, with values of 141.37 days in Q2 2023, 114.64 days in Q3 2023, and 90.98 days in Q4 2023. This downward trend indicates improved efficiency in managing inventory levels, potentially due to better demand forecasting, production planning, or inventory controls.
Overall, while the company faced challenges in managing inventory levels in the past, the recent decrease in DOH suggests efforts to optimize inventory turnover and reduce excess inventory. It will be essential for Chart Industries Inc to continue monitoring and improving its inventory management practices to maintain efficient operations and enhance profitability.