LyondellBasell Industries NV (LYB)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		7.52	9.13	7.63	5.61	6.39
DOH	days	48.52	39.99	47.83	65.09	57.15

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.52
= 48.52

The days of inventory on hand (DOH) for LyondellBasell Industries NV has exhibited fluctuations over the past five years. In 2023, the DOH increased to 48.52 days from 39.99 days in 2022, indicating that the company held inventory for a longer period before selling or using it. This increase may suggest potential inefficiencies in inventory management or slower inventory turnover.

Comparing the DOH in 2023 to prior years, it is lower than the levels seen in 2020 and 2019, indicating an improvement in inventory management efficiency compared to those years. However, the DOH in 2023 is still higher than the levels observed in 2021 and 2018, suggesting a slight deterioration in managing inventory levels efficiently compared to those periods.

Overall, fluctuations in DOH should be closely monitored by stakeholders as they can provide insights into how effectively the company is managing its inventory levels and the potential impact on working capital requirements and profitability.