ODP Corp (ODP)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.20 | 7.93 | 8.02 | 7.69 | 8.15 | |
| DOH | days | 50.69 | 46.00 | 45.49 | 47.49 | 44.79 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.20
= 50.69
To analyze ODP Corp's days of inventory on hand (DOH) over the past five years, we observe a trend of fluctuation. The DOH was 44.79 days at the end of 2020, which increased to 47.49 days by the end of 2021. Subsequently, there was a slight decrease, with DOH standing at 45.49 days by the end of 2022. However, by the end of 2023, the DOH increased to 46.00 days and further rose to 50.69 days by the end of 2024.
The increase in DOH indicates that ODP Corp may be carrying more inventory relative to its sales volume. A higher number of days in inventory may result in increased carrying costs, storage expenses, and potential obsolescence risks. It is essential for the company to manage its inventory efficiently to optimize working capital and improve overall profitability.
Further analysis, in conjunction with other financial ratios and operational metrics, would provide a holistic view of ODP Corp's inventory management and its impact on the company's financial performance.
Peer comparison
Dec 31, 2024