Hexcel Corporation (HXL)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		4.56	4.58	4.33	5.03	6.76
DOH	days	80.05	79.77	84.27	72.59	53.98

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.56
= 80.05

The days of inventory on hand (DOH) for Hexcel Corporation have shown an increasing trend over the past five years.

As of December 31, 2020, the company had an inventory holding period of 53.98 days, which increased to 72.59 days by December 31, 2021. This suggests that Hexcel is holding onto its inventory for a longer period, which could indicate potential inefficiencies in inventory management or changing demand patterns.

By December 31, 2022, the DOH further increased to 84.27 days, reaching a peak level. This continued upward trend in inventory holding days could lead to higher carrying costs and potential obsolescence risks for the company's inventory.

However, there was a slight improvement by December 31, 2023, with the DOH decreasing to 79.77 days. This indicates some efforts to manage inventory levels more effectively.

By the end of December 31, 2024, the DOH remained relatively stable at 80.05 days, suggesting that Hexcel may be working to optimize its inventory management practices.

Overall, the increasing trend in days of inventory on hand for Hexcel Corporation highlights the importance of closely monitoring and actively managing inventory levels to balance the need for product availability with minimizing carrying costs and potential risks.