Quaker Chemical Corporation (KWR)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.34 | 7.54 | 6.72 | 6.19 | 7.38 | |
| DOH | days | 49.72 | 48.43 | 54.31 | 58.97 | 49.46 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.34
= 49.72
The days of inventory on hand (DOH) for Quaker Chemical Corporation have exhibited some fluctuations over the past five years. In December 2020, the company had approximately 49.46 days of inventory on hand, which increased to 58.97 days by the end of December 2021. Subsequently, there was a slight decrease in DOH to 54.31 days by December 2022.
However, in the following years, Quaker Chemical Corporation managed to reduce its days of inventory on hand with 48.43 days in December 2023 and 49.72 days in December 2024. This trend indicates that the company has improved its inventory management efficiency and is able to convert its inventory into sales at a faster rate.
Overall, the decreasing trend in days of inventory on hand suggests that Quaker Chemical Corporation has been more effective in managing its inventory levels, which can lead to cost savings and better liquidity. It also indicates a potential improvement in the company's supply chain management and demand forecasting capabilities. However, it would be beneficial for the company to continue monitoring and optimizing its inventory levels to ensure efficient operations and profitability.
Peer comparison
Dec 31, 2024