Hess Corporation (HES)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		6.49	7.44	15.71	13.13	9.04
DOH	days	56.21	49.05	23.23	27.79	40.39

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.49
= 56.21

Hess Corporation's days of inventory on hand (DOH) has shown fluctuations over the past five years. As of December 31, 2020, the company held inventory for an average of 40.39 days, indicating a relatively high level of inventory. However, by December 31, 2021, the DOH decreased to 27.79 days, suggesting a more efficient inventory management process.

In the following years, the trend continued with Hess Corporation further improving its inventory management. By the end of December 31, 2022, the DOH decreased to 23.23 days, indicating a more streamlined inventory turnover process. However, there was a notable increase in the DOH by December 31, 2023, reaching 49.05 days, which may raise concerns about potential inventory build-up or slowdown in sales.

By the latest data available on December 31, 2024, the DOH increased even further to 56.21 days, signifying a longer period for inventory turnover. This may indicate potential inefficiencies in managing inventory levels or changes in market demand impacting inventory turnover ratios.

Overall, Hess Corporation's days of inventory on hand reflects a mix of improvements and challenges in inventory management over the analyzed period, highlighting the importance of closely monitoring and optimizing inventory levels to enhance operational efficiency and financial performance.