Howmet Aerospace Inc (HWM)
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 | 3.07 | 3.03 | 3.00 | 2.97 | 2.92 | 2.83 | 2.84 | 2.90 | 3.02 | 2.86 | 2.77 | 2.91 | 4.02 | 5.38 | 6.41 | 5.29 | 6.74 | 2.97 | 1.78 | 0.46 | |
| DOH | days | 119.01 | 120.45 | 121.48 | 123.00 | 124.82 | 129.06 | 128.49 | 126.03 | 120.98 | 127.82 | 131.61 | 125.53 | 90.76 | 67.85 | 56.97 | 68.99 | 54.12 | 122.87 | 204.73 | 789.22 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.07
= 119.01
Based on the data provided, Howmet Aerospace Inc's days of inventory on hand (DOH) have shown a decreasing trend over the past eight quarters. The company's DOH decreased from 143.14 days in Q4 2022 to 134.97 days in Q4 2023, indicating an improvement in inventory management efficiency.
The downward trend continued throughout the quarters, reaching its lowest point at 134.97 days in Q4 2023. This suggests that Howmet Aerospace has been more effective in managing its inventory levels and turning over its inventory more quickly in recent quarters.
Overall, the decreasing trend in DOH is a positive sign as it indicates that the company is able to manage its inventory more efficiently, reduce carrying costs, and potentially improve its cash flow by converting inventory into sales at a faster rate. It is worth noting that a lower DOH is generally considered more favorable, as it signifies that the company is more agile in adapting to changes in demand and market conditions.
Peer comparison
Dec 31, 2023