Materion Corporation (MTRN)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.40 | 3.81 | 3.90 | 4.62 | 4.67 | |
| DOH | days | 107.24 | 95.91 | 93.64 | 79.03 | 78.13 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.40
= 107.24
The days of inventory on hand (DOH) for Materion Corp have shown a generally increasing trend over the past five years. From 75.02 days in 2019, DOH rose to 93.06 days in 2020, further increasing to 107.43 days in 2021, and reaching 109.27 days in 2022. By the end of 2023, the DOH had climbed to 122.47 days.
This increasing trend in DOH indicates that Materion Corp is taking longer to sell its inventory, which may suggest inefficiencies in inventory management. A higher DOH can tie up capital in inventory and lead to increased carrying costs. It may also indicate lower inventory turnover or potential challenges in forecasting demand accurately.
It would be advisable for Materion Corp to evaluate its inventory management practices to optimize inventory levels and improve inventory turnover ratios to enhance operational efficiency and profitability.