NewMarket Corporation (NEU)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		4.56	3.60	3.93	3.90	4.69
DOH	days	80.01	101.36	92.87	93.55	77.86

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.56
= 80.01

The days of inventory on hand (DOH) for NewMarket Corp. have fluctuated over the past five years. In 2023, the company held inventory for approximately 86.47 days, showing a decrease compared to the previous year. This implies that the company was able to sell its inventory more quickly in 2023. However, the DOH was higher in 2022, indicating that inventory turnover was slower that year.

Looking further back, in 2021 and 2020, the DOH was relatively stable at around 100-103 days, suggesting that the company managed its inventory levels consistently during those periods. The lowest DOH was recorded in 2019 at 85.60 days, indicating efficient inventory management and a faster inventory turnover rate.

Overall, fluctuations in the DOH metric for NewMarket Corp. indicate varying levels of efficiency in managing inventory over the past five years. A decreasing trend in DOH, as seen in 2023, is generally positive as it signifies a quicker conversion of inventory into sales, potentially leading to improved liquidity and profitability.