International Seaways Inc (INSW)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		172.81	334.26	742.28	147.09	70.11
DOH	days	2.11	1.09	0.49	2.48	5.21

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 172.81
= 2.11

International Seaways Inc has shown a significant improvement in its days of inventory on hand (DOH) from 5.21 days as of December 31, 2020, to 2.48 days by December 31, 2021. This downward trend continued over the next few years, with DOH decreasing to 0.49 days by December 31, 2022, then slightly increasing to 1.09 days by December 31, 2023, and finally reaching 2.11 days by December 31, 2024.

The decreasing trend in DOH indicates that International Seaways Inc has been managing its inventory more efficiently over the years, holding less inventory relative to its sales. A lower DOH implies that the company is selling its inventory more quickly, reducing the risk of obsolete inventory or inventory carrying costs. However, the slight increase in DOH in 2023 and 2024 suggests that there may have been some changes in the company's inventory management strategies during those periods.

Overall, the downward trend in DOH reflects positively on International Seaways Inc's ability to effectively manage its inventory levels, potentially leading to improved liquidity and profitability. The company's management may continue to monitor and fine-tune its inventory management practices to maintain an optimal balance between inventory levels and sales demand in the future.