Ingevity Corp (NGVT)

Days of inventory on hand (DOH)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 7.48 7.48 6.44 5.12 5.22 3.73 3.73 3.79 3.99 4.53 4.31 4.39 4.53 4.62 4.69 4.73 5.00 4.59 4.34 4.25
DOH days 48.78 48.77 56.72 71.23 69.91 97.88 97.94 96.38 91.55 80.63 84.75 83.16 80.63 78.99 77.90 77.20 73.02 79.55 84.08 85.81

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 few years, ranging from as high as 97.94 days to as low as 48.77 days.

The DOH ratio indicates the number of days a company holds onto its inventory before selling it. A higher DOH may imply that the company is slow in converting its inventory into sales, which can tie up capital and increase carrying costs. Conversely, a lower DOH may suggest efficient inventory management, but could also indicate potential stockouts and lost sales if not managed properly.

Ingevity Corp experienced a significant decrease in its DOH from June 30, 2024, to December 31, 2024, dropping from 56.72 days to 48.78 days. This reduction may indicate improved inventory turnover and more efficient management of inventory levels during the latter part of 2024.

However, the substantial fluctuations in the DOH ratio observed over the reporting periods suggest that Ingevity Corp may need to focus on maintaining a balance between having enough inventory to meet demand and avoiding excess inventory that could strain working capital. Monitoring and potentially optimizing inventory levels could help enhance the company's overall financial performance and operational efficiency.