Hexcel Corporation (HXL)

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		4.58	4.30	4.04	3.99	4.33	4.38	4.84	4.79	5.01	5.12	5.49	6.17	6.93	6.04	5.41	5.17	5.64	5.32	5.47	5.43
DOH	days	79.78	84.91	90.41	91.50	84.27	83.41	75.38	76.27	72.80	71.26	66.53	59.18	52.70	60.43	67.46	70.62	64.77	68.57	66.70	67.27

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.58
= 79.78

The days of inventory on hand (DOH) for Hexcel Corp. have shown slight fluctuations over the past eight quarters. The DOH ranged from a low of 84.96 days in Q2 2022 to a high of 103.82 days in Q1 2023. Generally, a higher DOH indicates that the company is holding excess inventory, which may tie up capital and lead to higher storage costs. Conversely, a lower DOH can suggest efficient inventory management but may also signify potential stockouts.

In Q4 2023, the DOH decreased to 90.03 days from 96.15 days in Q3 2023, indicating a potential improvement in inventory management efficiency. It is essential for Hexcel Corp. to strike a balance in managing inventory levels to ensure optimal use of resources while meeting customer demands. Monitoring the DOH can provide insights into the company's inventory management practices and help identify areas for improvement.