Marathon Petroleum Corp (MPC)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		13.19	13.80	17.18	13.66	8.22
DOH	days	27.66	26.45	21.24	26.73	44.42

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.19
= 27.66

The Days of Inventory on Hand (DOH) for Marathon Petroleum Corp has shown a decreasing trend over the analyzed period. As of December 31, 2020, the company had 44.42 days of inventory on hand, which decreased to 26.73 days by December 31, 2021. Subsequently, by December 31, 2022, the DOH further decreased to 21.24 days. However, there was a slight increase in DOH to 26.45 days by December 31, 2023, followed by a modest increase to 27.66 days by December 31, 2024.

The decreasing trend in the DOH generally indicates that Marathon Petroleum Corp has been able to manage its inventory more efficiently, potentially leading to lower carrying costs and better inventory turnover. However, the slight increases in 2023 and 2024 may suggest some fluctuations or adjustments in the company's inventory management practices.

Overall, the decreasing trend in DOH is a positive sign for the company, as it signifies improved inventory management and potentially better working capital utilization.