Marathon Oil Corporation (MRO)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		1.93	2.54	6.79	12.14	7.25
DOH	days	189.11	143.93	53.74	30.05	50.34

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.93
= 189.11

The Days of Inventory on Hand (DOH) for Marathon Oil Corporation have shown a consistent increasing trend over the past five years, indicating a potential inefficiency in managing inventory levels.
In 2019, the company had a DOH of 36.91 days, which then increased to 49.98 days in 2020, 52.63 days in 2021, 66.12 days in 2022, and further to 81.99 days in 2023. This suggests that Marathon Oil may be carrying more inventory relative to its sales, which can tie up working capital and potentially lead to increased storage and holding costs.
A high DOH value could imply challenges in accurately forecasting demand, slow inventory turnover, or potential obsolescence of inventory. Management may need to closely monitor and improve their inventory management practices to optimize working capital utilization and enhance overall operational efficiency.