Owens Corning Inc (OC)
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 | 5.04 | 3.65 | 3.45 | 4.42 | 4.55 | 4.38 | 4.26 | 4.14 | 4.14 | 5.02 | 5.11 | 5.38 | 5.48 | 5.96 | 6.16 | 6.00 | 5.79 | 6.00 | 5.58 | 5.18 | |
| DOH | days | 72.35 | 100.01 | 105.76 | 82.55 | 80.23 | 83.26 | 85.71 | 88.27 | 88.11 | 72.76 | 71.37 | 67.89 | 66.57 | 61.27 | 59.26 | 60.83 | 63.07 | 60.87 | 65.39 | 70.43 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.04
= 72.35
The Days of Inventory on Hand (DOH) is a key efficiency ratio that measures how many days, on average, it takes for a company to sell its inventory. A lower DOH indicates that the company is able to sell its inventory more quickly, which is generally favorable as it reduces the risk of obsolescence and holding costs.
Analyzing Owens Corning Inc's DOH over the past few quarters, we observe fluctuations in the metric. From March 31, 2020, to June 30, 2020, the DOH decreased from 70.43 days to 65.39 days, suggesting an improvement in inventory turnover efficiency. This trend continued through September 30, 2020, with DOH further decreasing to 60.87 days.
However, there was a slight increase in DOH by December 31, 2020, rising to 63.07 days, signaling a potential slowdown in inventory turnover. The trend reversed again by March 31, 2021, with DOH declining to 60.83 days, indicating improved efficiency.
The trend continues with fluctuations in DOH over subsequent quarters. Notably, there was a significant increase in DOH by June 30, 2024, reaching 105.76 days, followed by a decrease by December 31, 2024, to 72.35 days.
Overall, Owens Corning Inc's DOH has shown variability, indicating shifts in inventory management effectiveness. It is important for the company to closely monitor and manage its inventory levels to ensure optimal efficiency in the use of its resources.