NewMarket Corporation (NEU)

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		4.56	4.21	4.09	4.02	3.60	3.78	4.11	3.93	3.93	3.90	3.77	3.84	3.90	4.26	4.59	4.60	4.68	4.62	4.63	4.57
DOH	days	80.01	86.76	89.26	90.82	101.36	96.53	88.77	92.85	92.87	93.53	96.80	95.07	93.55	85.60	79.48	79.30	77.92	79.04	78.91	79.81

December 31, 2023 calculation

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

To analyze NewMarket Corp.'s days of inventory on hand (DOH) performance, we observe a fluctuating trend over the past eight quarters. DOH decreased from 108.49 days in Q4 2022 to 86.47 days in Q4 2023, indicating a positive trend of managing inventory more efficiently. The company's inventory turnover has improved consistently over the last two quarters, suggesting effective inventory management practices.

However, the DOH slightly increased in Q3 2023 and Q2 2023 compared to the previous quarter, potentially indicating slower sales or inventory management challenges during those periods. While a DOH of 95.91 days in Q2 2023 and 97.40 days in Q1 2023 indicates a slight increase, it falls within an acceptable range for inventory turnover efficiency.

Overall, NewMarket Corp. has shown a generally positive trend of managing its inventory efficiently, with occasional fluctuations that may require further analysis to understand the underlying reasons. Efficient inventory management is crucial for maintaining liquidity, managing costs, and meeting customer demand effectively.