LyondellBasell Industries NV (LYB)

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		7.52	7.38	7.35	8.06	9.13	8.82	8.72	8.21	7.63	6.66	5.98	5.43	5.61	6.17	6.92	7.23	6.39	6.74	6.66	7.11
DOH	days	48.52	49.43	49.67	45.28	39.99	41.41	41.86	44.48	47.83	54.81	61.02	67.17	65.09	59.20	52.74	50.49	57.15	54.12	54.78	51.34

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 shown a fluctuating trend over the past eight quarters. In Q4 2023, the company reported a DOH of 48.52 days, which was slightly lower compared to the previous quarter at 49.43 days. This indicates that the company held inventory for approximately 48.52 days before selling it during the fourth quarter of 2023.

Looking at the historical data, we observe that the DOH has generally been increasing since Q4 2022, where it stood at 39.99 days. This suggests that the company may be carrying more inventory relative to its sales. However, it is important to note that the inventory management strategy of LyondellBasell Industries NV can be affected by various factors such as seasonality, industry demand, and supply chain disruptions.

In comparison to the same quarter in the previous year, Q4 2022, the current DOH of 48.52 days is significantly higher, indicating a potential buildup of inventory. A higher DOH may suggest inefficiencies in inventory management, tying up cash flow and potentially leading to higher carrying costs.

Overall, it is essential for LyondellBasell Industries NV to closely monitor and manage its inventory levels to optimize working capital, improve cash flow, and ensure efficient operations in response to market conditions and business needs.