Ingevity Corp (NGVT)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.22 | 3.99 | 4.53 | 5.00 | 4.85 | |
| DOH | days | 69.90 | 91.55 | 80.63 | 73.03 | 75.33 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.22
= 69.90
The Days of Inventory on Hand (DOH) for Ingevity Corp has fluctuated over the past five years, ranging from 91.91 days in 2020 to 111.34 days in 2022. In 2023, the DOH decreased to 92.37 days, indicating that the company was able to manage its inventory more efficiently compared to the previous year.
A higher DOH suggests that the company may be holding excess inventory, which ties up working capital and increases carrying costs. Conversely, a lower DOH can indicate more efficient inventory management, potentially resulting in lower costs and higher liquidity.
It is essential for Ingevity Corp to continue monitoring and optimizing its inventory levels to strike a balance between ensuring product availability for customers and minimizing carrying costs. Additionally, a consistent trend of decreasing DOH over time may reflect improvements in inventory management practices within the company.
Peer comparison
Dec 31, 2023