Owens Corning Inc (OC)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.02 | 5.54 | 5.99 | 7.64 | 5.37 | |
| DOH | days | 60.59 | 65.90 | 60.92 | 47.81 | 67.92 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.02
= 60.59
Owens Corning's days of inventory on hand (DOH) have fluctuated over the past five years, ranging from 57.31 days at the end of 2020 to a high of 68.15 days at the end of 2022. In 2023, the company managed to reduce its DOH to 62.52 days compared to the previous year.
A lower DOH indicates that the company is more efficient in managing its inventory levels, which can lead to lower carrying costs and a faster inventory turnover. On the other hand, a higher DOH may suggest that the company is struggling to sell its inventory quickly, potentially leading to inventory obsolescence or markdowns.
Overall, Owens Corning's trend in DOH indicates some variability in inventory management efficiency over the years, and further analysis is needed to understand the specific factors contributing to these fluctuations and their impact on the company's operations and financial performance.