Quaker Chemical Corporation (KWR)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.54 | 6.72 | 6.19 | 7.38 | 6.32 | |
| DOH | days | 48.43 | 54.31 | 58.97 | 49.46 | 57.78 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.54
= 48.43
The days of inventory on hand (DOH) for Quaker Houghton has shown a consistent trend of improvement over the past five years. From 86.13 days in 2019, the DOH decreased to 68.41 days in 2023. This indicates that the company has been able to manage its inventory more efficiently, holding less inventory relative to its sales volume.
The declining trend in DOH signifies that Quaker Houghton has been successful in optimizing its inventory management processes, potentially reducing carrying costs, storage expenses, and the risk of obsolete inventory. This could reflect positively on the company's working capital management and overall operational efficiency.
Overall, the decreasing trend in days of inventory on hand for Quaker Houghton suggests a positive development in the company's inventory control and supply chain management practices over the analyzed period.
Peer comparison
Dec 31, 2023