Hexcel Corporation (HXL)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		4.58	4.33	5.03	6.76	5.65
DOH	days	79.77	84.27	72.59	53.98	64.64

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.58
= 79.77

Days of inventory on hand (DOH) measures the average number of days a company holds its inventory before selling it. A higher DOH indicates that a company may be facing challenges in efficiently managing its inventory levels.

From 2019 to 2023, Hexcel Corp.'s DOH has fluctuated. In 2019, the company held inventory for an average of 70.88 days, which increased to 95.48 days in 2022 before decreasing to 90.03 days in 2023.

The increase in DOH from 2019 to 2022 suggests potential issues such as overstocking or slowing sales, leading to excess inventory. This can tie up working capital and increase storage costs. However, the decrease in 2023 indicates some improvement in managing inventory levels.

Overall, Hexcel Corp. should continue to monitor its inventory closely to ensure efficient management and avoid potential challenges associated with excess inventory levels.