Innospec Inc (IOSP)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 5.93 5.88 4.69 4.80 5.27
DOH days 61.56 62.06 77.74 76.06 69.23

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.93
= 61.56

Innospec Inc's days of inventory on hand (DOH) has shown a fluctuating trend over the five-year period from 2020 to 2024. The DOH increased from 69.23 days as of December 31, 2020, to 77.74 days by the end of 2022, indicating a prolonged period for the company to sell off its inventory.

However, there was a notable improvement in inventory management efficiency as of December 31, 2024, with the DOH decreasing to 61.56 days. This reduction suggests that Innospec Inc has made progress in streamlining its inventory levels, potentially leading to lower carrying costs and better liquidity.

Overall, monitoring the days of inventory on hand provides valuable insights into the company's inventory management effectiveness, cash flow dynamics, and operational efficiency.