Materion Corporation (MTRN)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.40 | 3.33 | 3.37 | 3.65 | 3.81 | 3.80 | 2.69 | 1.71 | 0.49 | 0.26 | 0.39 | 0.52 | 0.69 | 0.54 | 0.49 | 0.43 | 0.30 | -0.59 | -0.54 | -0.50 | |
| DOH | days | 107.24 | 109.68 | 108.23 | 100.01 | 95.91 | 96.09 | 135.93 | 213.39 | 752.35 | 1,384.99 | 925.25 | 696.83 | 532.64 | 679.99 | 744.36 | 845.78 | 1,212.49 | — | — | — |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.40
= 107.24
To analyze Materion Corp's Days of Inventory on Hand (DOH), we track the number of days it takes for the company to sell its inventory. A lower number of days typically indicates efficient inventory management.
The trend over the last 8 quarters shows some fluctuations in Materion Corp's DOH. In Q4 2023, the DOH was at 122.47 days, which was a slight improvement from the previous quarter but still higher compared to the same quarter in the previous year. The gradual decrease from Q2 to Q4 in 2023 could indicate better inventory turnover efficiency.
Comparing Q4 2023 to Q1 2022, we observe an upward trajectory in DOH, indicating that Materion Corp may be holding onto inventory for a longer period. This could suggest potential challenges in managing inventory levels efficiently and aligning them with sales demand.
While the DOH metric fluctuates, a general observation is that Materion Corp's DOH has been relatively high over the quarters compared to industry benchmarks. The company may benefit from implementing strategies to optimize inventory levels and improve inventory turnover to enhance operational efficiency and minimize carrying costs.