Norfolk Southern Corporation (NSC)
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 | 16.34 | 14.02 | 13.47 | 15.36 | 15.36 | 13.27 | 15.21 | 16.05 | 16.34 | 14.28 | 12.60 | 13.01 | 15.11 | 13.57 | 12.50 | 12.15 | 13.29 | 12.63 | 12.92 | 13.68 | |
| DOH | days | 22.34 | 26.04 | 27.09 | 23.76 | 23.76 | 27.50 | 23.99 | 22.74 | 22.34 | 25.56 | 28.97 | 28.06 | 24.15 | 26.90 | 29.20 | 30.05 | 27.47 | 28.91 | 28.25 | 26.68 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 16.34
= 22.34
The days of inventory on hand (DOH) for Norfolk Southern Corporation have exhibited fluctuations over the specified periods as per the provided data. The DOH has ranged from a low of 22.34 days to a high of 30.05 days during the period under review.
Observing the trend in the DOH metric, there appears to be some variability in managing inventory levels efficiently. An increase in DOH indicates that Norfolk Southern Corporation may be holding onto inventory for a longer period before it is sold, which could tie up working capital and potentially lead to increased carrying costs.
On the other hand, a decrease in DOH suggests a more efficient management of inventory, with faster turnover and potentially lower carrying costs. The company should strive to strike a balance in maintaining optimal inventory levels to meet customer demand while avoiding excess inventory buildup that could impact profitability.
Overall, a thorough analysis of the underlying factors driving these fluctuations in the DOH metric, such as changes in demand patterns, supply chain disruptions, or inventory management practices, would be essential to fully evaluate Norfolk Southern Corporation's inventory management effectiveness.
Peer comparison
Dec 31, 2024
See also:
Norfolk Southern Corporation Average Inventory Processing Period (Quarterly Data)