Koppers Holdings Inc (KOP)
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 | 5.00 | 5.28 | 5.22 | 5.01 | 5.22 | 5.85 | 5.20 | 4.91 | 4.99 | 5.23 | 5.27 | 5.13 | 5.16 | 5.74 | 6.09 | 5.92 | 5.73 | 6.14 | 5.95 | 5.78 | |
| DOH | days | 72.96 | 69.08 | 69.87 | 72.86 | 69.86 | 62.37 | 70.22 | 74.27 | 73.12 | 69.76 | 69.31 | 71.18 | 70.72 | 63.55 | 59.95 | 61.68 | 63.73 | 59.42 | 61.34 | 63.17 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.00
= 72.96
To analyze Koppers Holdings Inc's Days of Inventory on Hand (DOH) ratio, we can see a fluctuating trend in the values over the last 8 quarters. In Q1 2022, DOH stood at 86.23 days and improved to 71.51 days by Q3 2022, indicating a reduction in the time taken to sell inventory. However, from Q3 2022 to Q1 2023, there was an increasing trend, with DOH reaching a high of 82.64 days in Q1 2023.
The increase in DOH from Q3 2022 to Q1 2023 suggests that Koppers Holdings Inc may be experiencing difficulties in efficiently managing its inventory levels. A higher number of days of inventory on hand may indicate that the company is holding onto excess inventory, which ties up capital and may lead to increased storage costs and potential obsolescence.
It would be advisable for Koppers Holdings Inc to assess and possibly streamline its inventory management practices to optimize its working capital position. By identifying and addressing the root causes of the elevated DOH ratio, the company can potentially enhance its operational efficiency and financial performance in the coming quarters.
Peer comparison
Dec 31, 2023