Norfolk Southern Corporation (NSC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 16.10 | 15.36 | 16.34 | 15.11 | 13.73 | |
| DOH | days | 22.66 | 23.76 | 22.34 | 24.15 | 26.58 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 16.10
= 22.66
The days of inventory on hand (DOH) for Norfolk Southern Corporation have shown a downward trend over the years, indicating an improvement in managing its inventory levels efficiently. From 26.58 days on December 31, 2020, the DOH decreased to 24.15 days on December 31, 2021, and further dropped to 22.34 days by December 31, 2022. However, there was a slight increase to 23.76 days on December 31, 2023, followed by a decrease to 22.66 days on December 31, 2024.
The overall decrease in DOH reflects that Norfolk Southern Corporation has been able to sell its inventory more quickly or effectively utilize its inventory in the production process. A low DOH indicates efficient inventory management, reducing carrying costs and minimizing the risk of obsolete inventory. This trend suggests improved operational efficiency and potentially better profitability for the company.
Peer comparison
Dec 31, 2024
See also:
Norfolk Southern Corporation Average Inventory Processing Period