Ingevity Corp (NGVT)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 7.48 5.22 3.99 4.53 5.00
DOH days 48.78 69.90 91.55 80.63 73.03

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.48
= 48.78

The Days of Inventory on Hand (DOH) ratio for Ingevity Corp has shown some fluctuations over the past five years. The ratio was 73.03 days as of December 31, 2020, and increased to 80.63 days by December 31, 2021. Subsequently, there was a notable jump to 91.55 days by December 31, 2022. However, the DOH decreased to 69.90 days by December 31, 2023, and further decreased to 48.78 days by December 31, 2024.

The higher the DOH value, the longer it takes for the company to sell its inventory, which could indicate inefficiencies in inventory management or declining sales. Conversely, a lower DOH value suggests that the company is selling its inventory more quickly, potentially leading to lower holding and storage costs.

Overall, the trend in Ingevity Corp's DOH ratio indicates some variability in inventory management efficiency over the years, with a significant decrease in inventory holding period observed towards the end of the period under review. This could potentially signal improved inventory turnover and better liquidity for the company.