Owens Corning Inc (OC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.58 | 6.02 | 5.54 | 5.99 | 7.64 | |
| DOH | days | 65.45 | 60.59 | 65.90 | 60.92 | 47.81 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.58
= 65.45
The Days of Inventory on Hand (DOH) for Owens Corning Inc has shown a gradual increase over the period from December 31, 2020, to December 31, 2024. The DOH increased from 47.81 days in 2020 to 65.45 days in 2024, indicating that Owens Corning is holding onto its inventory for a longer period before selling it.
A rising trend in DOH could suggest that Owens Corning may be facing challenges in efficiently managing its inventory levels. This could potentially result in increased carrying costs, the risk of obsolescence, or inefficiencies in production and sales processes.
It is important for Owens Corning to closely monitor its inventory levels and implement strategies to optimize inventory management to ensure that working capital is effectively utilized and to avoid potential bottlenecks in the supply chain.