Howmet Aerospace Inc (HWM)
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 | 2.86 | 2.73 | 2.77 | 2.79 | 2.70 | 2.66 | 2.64 | 2.60 | 2.55 | 2.44 | 2.43 | 2.48 | 2.56 | 2.49 | 2.41 | 2.46 | 3.48 | 4.38 | 5.30 | 4.33 | |
| DOH | days | 127.80 | 133.61 | 131.59 | 131.05 | 134.97 | 137.12 | 138.31 | 140.52 | 143.14 | 149.68 | 150.01 | 147.37 | 142.31 | 146.83 | 151.75 | 148.64 | 105.03 | 83.38 | 68.85 | 84.23 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.86
= 127.80
Days of inventory on hand (DOH) is a metric that indicates how many days, on average, a company holds its inventory before selling it. For Howmet Aerospace Inc, the DOH trend shows fluctuation over the years.
From March 31, 2020, to September 30, 2020, the DOH decreased from 84.23 days to 68.85 days, indicating improved inventory management efficiency. However, the trend reversed in December 2020, with DOH increasing sharply to 105.03 days and further rising to 148.64 days by March 31, 2021.
The company continued to face challenges in managing its inventory efficiently as DOH remained elevated through June 30, 2021 (151.75 days) and September 30, 2021 (146.83 days). However, there was a slight improvement by December 31, 2021, as DOH decreased to 142.31 days.
Subsequently, from March 31, 2022, to December 31, 2024, Howmet Aerospace managed to reduce its DOH gradually to 127.80 days. This downward trend suggests the company made efforts to streamline its inventory management processes and optimize its supply chain.
Overall, monitoring the DOH of Howmet Aerospace over time provides insights into the company's ability to efficiently manage its inventory levels, control costs, and improve operational performance.
Peer comparison
Dec 31, 2024