Owens Corning Inc (OC)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 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 | 5.37 | 5.39 | 5.20 | 4.90 | |
| DOH | days | 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 | 67.92 | 67.74 | 70.17 | 74.53 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.55
= 80.23
The Days of Inventory on Hand (DOH) ratio for Owens Corning has exhibited a declining trend over the four quarters of 2023. In Q4 2023, the company had 62.52 days of inventory on hand, showing an improvement from 64.06 days in Q3 2023, 66.18 days in Q2 2023, and 68.31 days in Q1 2023. This reduction indicates that the company was able to manage its inventory more efficiently and sell its products at a faster rate compared to previous quarters.
Comparing the Q4 2023 DOH of 62.52 days to the same period last year, Q4 2022, at 68.15 days, Owens Corning has made significant progress in inventory management. The company has been able to streamline its inventory levels, potentially leading to lower carrying costs and a more agile response to market demand.
Overall, the decreasing trend in the DOH ratio for Owens Corning suggests an improvement in inventory turnover efficiency and a better utilization of resources. This could be a positive sign indicating effective inventory management practices within the company.