Howmet Aerospace Inc (HWM)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.07 | 2.92 | 3.02 | 3.11 | 8.50 | |
| DOH | days | 119.01 | 124.82 | 120.98 | 117.28 | 42.95 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.07
= 119.01
The days of inventory on hand (DOH) for Howmet Aerospace Inc has shown a fluctuating trend over the past five years. In 2019, the company had a relatively low DOH of 78.97 days, indicating that it held inventory for less than 3 months on average. However, this figure increased significantly in subsequent years, reaching a peak of 143.14 days in 2022 before slightly decreasing to 134.97 days in 2023.
A high DOH value suggests that the company is holding inventory for an extended period, which could tie up capital and potentially indicate inefficiencies in inventory management. Conversely, a low DOH value may indicate lean inventory practices, which can be positive for working capital management but may pose risks of stockouts or production disruptions.
Overall, Howmet Aerospace Inc's fluctuating DOH trend signifies fluctuations in inventory management efficiency over the years, and it would be crucial for the company to strike a balance between ensuring adequate stock levels while minimizing excess inventory holding costs in order to optimize its operational performance.
Peer comparison
Dec 31, 2023