Innospec Inc (IOSP)
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 | 5.86 | 5.32 | 5.07 | 4.88 | 4.68 | 4.35 | 4.26 | 4.67 | 4.77 | 4.52 | 4.57 | 5.04 | 5.22 | 5.02 | 5.31 | 5.41 | 5.53 | 5.40 | 5.46 | 5.44 | |
| DOH | days | 62.25 | 68.55 | 72.03 | 74.86 | 78.07 | 83.92 | 85.73 | 78.13 | 76.52 | 80.83 | 79.93 | 72.37 | 69.98 | 72.70 | 68.74 | 67.43 | 66.05 | 67.63 | 66.85 | 67.11 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.86
= 62.25
To analyze Innospec Inc's days of inventory on hand (DOH) over the past eight quarters, we observe a general upward trend in the number of days it takes for the company to sell its inventory.
In Q1 2022, the DOH stood at 98.44 days, which increased steadily to 107.97 days in Q2 2022. This trend continued, reaching its peak at 105.72 days in Q3 2022 before slightly decreasing to 98.90 days in Q4 2022.
However, starting from Q1 2023, there was a significant uptick in DOH, with 94.96 days, followed by 92.47 days in Q2 2023, 87.82 days in Q3 2023, and finally leveling off at 80.68 days in Q4 2023.
The declining trend in the more recent quarters may indicate a potential improvement in inventory management efficiency, as the company appears to be turning over its inventory at a faster rate. It is essential for Innospec to monitor this metric closely to ensure optimal inventory levels and operational effectiveness.
Peer comparison
Dec 31, 2023