NewMarket Corporation (NEU)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		3.76	4.22	3.36	3.63	3.53
DOH	days	97.08	86.47	108.49	100.62	103.38

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.76
= 97.08

The days of inventory on hand (DOH) for NewMarket Corporation over the past five years have shown some fluctuations. As of December 31, 2020, the company held inventory for approximately 103.38 days, which slightly declined to 100.62 days by December 31, 2021. Subsequently, the DOH increased to 108.49 days by December 31, 2022. However, there was a notable decrease in inventory holding period to 86.47 days as of December 31, 2023, indicating more efficient management of inventory levels. By December 31, 2024, the DOH increased to 97.08 days.

Overall, the trend in DOH for NewMarket Corporation reflects some variability, with a mix of both increases and decreases in the number of days the company holds inventory. A lower DOH suggests that the company is selling its inventory at a faster rate, while a higher DOH may indicate inventory management challenges or potential overstocking. It is important for NewMarket Corporation to further analyze the reasons behind these fluctuations to optimize inventory levels and enhance operational efficiency.