Minerals Technologies Inc (MTX)
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 | 5.85 | 5.66 | 5.20 | 5.00 | 5.37 | 5.31 | 5.20 | 5.01 | 5.42 | 5.56 | 5.70 | 5.75 | 5.59 | 5.43 | 5.33 | 6.12 | 6.16 | 6.07 | 6.05 | 6.05 | |
| DOH | days | 62.43 | 64.45 | 70.21 | 73.04 | 68.01 | 68.70 | 70.18 | 72.80 | 67.30 | 65.71 | 64.00 | 63.43 | 65.25 | 67.19 | 68.49 | 59.63 | 59.26 | 60.16 | 60.29 | 60.33 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.85
= 62.43
To analyze Minerals Technologies, Inc.'s days of inventory on hand (DOH) over the past eight quarters, we observe a general trend of decreasing DOH, albeit with some fluctuations. The DOH ranged from 71.43 days in Q4 2023 to 82.97 days in Q1 2022.
The decreasing trend in DOH indicates that the company has been improving its efficiency in managing inventory levels over time. A lower DOH suggests that the company is selling its inventory more quickly or efficiently, which can lead to lower carrying costs and potentially higher liquidity.
However, it is important to note the fluctuations in the DOH over the quarters, which could indicate seasonality or varying production and sales patterns in the business. It would be valuable for stakeholders to further investigate the reasons behind these fluctuations to ensure they are sustainable and not indicative of underlying issues in the company's operations.
Overall, the decreasing trend in DOH for Minerals Technologies, Inc. indicates improving inventory management efficiency, which can have positive implications for the company's financial performance and overall operational effectiveness.
Peer comparison
Dec 31, 2023