Warrior Met Coal Inc (HCC)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.23 | 6.14 | 11.76 | 6.38 | 9.08 | |
| DOH | days | 58.59 | 59.41 | 31.03 | 57.24 | 40.18 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.23
= 58.59
Warrior Met Coal Inc's days of inventory on hand (DOH) has fluctuated over the past five years, ranging from as low as 37.31 days in 2021 to as high as 76.22 days in 2022. The DOH indicates the average number of days the company holds inventory before selling it, with a lower number typically indicating more efficient inventory management.
In 2021, the company significantly improved its inventory management, as reflected in the decrease in DOH to 37.31 days. However, in 2022, there was a notable increase in DOH to 76.22 days, suggesting potential issues with inventory turnover or perhaps overstocking.
The most recent data for 2023 shows a DOH of 70.84 days, indicating that Warrior Met Coal Inc is still holding inventory for a relatively long period. This may suggest room for improvement in terms of optimizing inventory levels to enhance operational efficiency and liquidity.
Overall, monitoring the trend of DOH over time can provide insights into the company's inventory management effectiveness and operational performance.
Peer comparison
Dec 31, 2023