LyondellBasell Industries NV (LYB)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		7.67	7.52	9.13	7.63	5.61
DOH	days	47.57	48.52	39.99	47.83	65.09

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.67
= 47.57

The days of inventory on hand (DOH) for LyondellBasell Industries NV have exhibited a decreasing trend over the past five years, indicating improved efficiency in managing its inventory levels.

At the end of December 31, 2020, the company held inventory for an average of 65.09 days before selling it. Over the subsequent years, there has been a consistent decline in the DOH metric, reaching 47.57 days by the end of December 31, 2024. This reduction suggests that LyondellBasell has been able to turn its inventory into sales at a faster rate.

A lower DOH is generally favorable as it implies that the company can minimize carrying costs, reduce the risk of obsolescence, and enhance cash flows by converting inventory into revenue more efficiently. It indicates effective inventory management and demand forecasting, potentially leading to improved profitability and operational performance.