Innospec Inc (IOSP)

Days of inventory on hand (DOH)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 5.90 5.20 5.38 5.72 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
DOH days 61.86 70.16 67.88 63.84 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

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.90
= 61.86

The days of inventory on hand (DOH) for Innospec Inc have shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The DOH metric indicates how many days a company takes to sell its inventory.

Initially, in March 2020, the company had 67.43 days of inventory on hand, which increased slightly to 68.74 days by June 30, 2020. Subsequently, the DOH saw a significant rise to 80.83 days by September 30, 2021. This increase suggests that the company may have had excess inventory or faced challenges in selling its products efficiently.

From September 2021 to December 2024, there were fluctuations in the DOH but generally trending downwards. The metric fluctuated between 61.86 days and 85.73 days during this period, reaching its lowest point of 61.86 days by December 31, 2024. A decreasing trend in DOH can indicate improved inventory management, efficient sales processes, or a shift in the product mix towards faster-selling items.

Overall, monitoring the DOH over time can provide insights into the company's inventory management efficiency, sales performance, and potential liquidity issues related to tying up capital in slow-moving inventory. It is essential for Innospec Inc to strike a balance in managing its inventory levels to optimize operations and maintain healthy financial performance.