Mativ Holdings Inc. (MATV)
Days of inventory on hand (DOH)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Inventory turnover | 4.55 | 4.73 | 3.23 | 4.28 | 4.26 | |
DOH | days | 80.16 | 77.25 | 112.87 | 85.35 | 85.62 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.55
= 80.16
Days of Inventory on Hand (DOH) is a crucial financial ratio that provides insight into how efficiently Mativ Holdings Inc. manages its inventory levels.
From the data provided, we observe that the DOH for Mativ Holdings Inc. fluctuated over the period analyzed.
In December 31, 2020, the company had an average of 85.62 days of inventory on hand, indicating that it took approximately 85.62 days for the company to sell its entire inventory.
By December 31, 2021, the DOH decreased slightly to 85.35 days, suggesting a marginal improvement in inventory management efficiency.
However, in December 31, 2022, the DOH spiked to 112.87 days, which could indicate potential issues such as overstocking or slowing sales.
The trend reversed in December 31, 2023, with a significant decrease in DOH to 77.25 days, reflecting better inventory management.
In December 31, 2024, the DOH increased slightly to 80.16 days, still lower than the peak in 2022 but indicating a modest increase in inventory holding period.
Overall, fluctuations in DOH suggest Mativ Holdings Inc. may have encountered challenges in managing inventory efficiently. Monitoring and optimizing inventory levels can help the company enhance working capital efficiency and operational performance.
Peer comparison
Dec 31, 2024