Materion Corporation (MTRN)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.64 | 3.40 | 3.81 | 3.90 | 4.62 | |
| DOH | days | 100.31 | 107.24 | 95.91 | 93.64 | 79.03 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.64
= 100.31
Based on the provided data, Materion Corporation's Days of Inventory on Hand (DOH) has displayed an increasing trend over the past five years.
As of December 31, 2020, Materion Corporation held inventory for an average of 79.03 days, which increased to 93.64 days by the end of 2021, indicating a rise in the number of days it takes to sell its inventory. This trend continued in the subsequent years, with DOH reaching 95.91 days by the end of 2022, 107.24 days by the end of 2023, and 100.31 days by the end of 2024.
The increasing DOH suggests that Materion Corporation may be facing challenges in efficiently managing its inventory levels relative to its sales volume. A higher DOH value can indicate potential inventory management issues, such as overstocking or slower inventory turnover, which could tie up working capital and lead to higher carrying costs.
It is important for Materion Corporation to closely monitor its inventory levels and implement strategies to optimize its inventory management, such as improving demand forecasting, streamlining supply chain processes, and identifying slow-moving items to enhance operational efficiency and reduce carrying costs.