International Paper (IP)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.50 | 7.21 | 7.80 | 7.63 | 7.01 | |
| DOH | days | 48.68 | 50.59 | 46.81 | 47.87 | 52.06 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.50
= 48.68
International Paper's Days of Inventory on Hand (DOH) has shown a decreasing trend over the five-year period from December 31, 2020, to December 31, 2024. The DOH decreased from 52.06 days in 2020 to 48.68 days in 2024. This indicates that the company has been more efficient in managing its inventory levels and turning them into sales.
A lower DOH suggests that International Paper is holding less inventory on hand, which can free up capital and reduce storage costs. However, a significant decrease in DOH could also indicate a risk of potential stockouts or disruptions in the supply chain.
Overall, the decreasing trend in International Paper's DOH reflects improved inventory management practices and efficiency in converting its inventory into revenue over the five-year period.
Peer comparison
Dec 31, 2024