Hess Corporation (HES)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		11.33	15.52	17.44	15.13	16.48	11.68	13.68	15.81	15.71	11.62	9.50	12.11	13.13	11.44	13.00	14.65	9.04	8.50	32.21	15.85
DOH	days	32.20	23.52	20.93	24.13	22.14	31.25	26.68	23.09	23.23	31.42	38.41	30.15	27.79	31.91	28.08	24.92	40.39	42.93	11.33	23.03

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.33
= 32.20

Hess Corporation's Days of Inventory on Hand (DOH) has experienced fluctuations over the years based on the provided data.

The DOH measures the average number of days that inventory is held before being sold. A lower DOH is generally preferred as it indicates efficient inventory management.

From March 31, 2020, to December 31, 2020, the DOH increased from 23.03 days to 40.39 days, signifying a potential buildup of inventory or slower inventory turnover during that period.

However, in the subsequent quarters of March 31, 2021, to June 30, 2021, the DOH decreased slightly to 24.92 days and then increased again to 28.08 days by June 30, 2021, indicating fluctuations in inventory management efficiency.

There was a more significant increase in DOH to 38.41 days by June 30, 2022, possibly indicating challenges in managing inventory effectively or changes in demand patterns.

The DOH decreased to 20.93 days by June 30, 2024, suggesting a potentially positive development in inventory management efficiency for that period.

Overall, analyzing the DOH trend can provide insights into the company's inventory management practices and efficiency levels, helping stakeholders better understand how effectively the company is managing its inventory levels over time.