O-I Glass Inc (OI)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.74 | 7.30 | 7.14 | 6.85 | 5.88 | |
| DOH | days | 63.59 | 50.02 | 51.11 | 53.26 | 62.07 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.74
= 63.59
The Days of Inventory on Hand (DOH) ratio for O-I Glass Inc has shown a fluctuating trend over the past five years. The company's inventory turnover has varied, reflecting changes in the efficiency of managing inventory levels.
In 2023, O-I Glass Inc had a DOH of 63.59 days, indicating that, on average, it took the company approximately 63.59 days to sell its inventory. This represents an increase from the previous year's DOH of 50.02 days. The higher DOH in 2023 suggests that the company may be carrying excess inventory, which could tie up working capital and potentially lead to increased storage costs.
Comparing to the DOH in 2021 and 2020, which were 51.11 days and 53.26 days respectively, the increase in 2023 may raise concerns about O-I Glass Inc's inventory management efficiency. However, it is worth noting that the DOH in 2023 is still lower than the DOH recorded in 2019, which was 62.07 days, indicating some improvement in inventory turnover compared to that year.
Overall, the trend in O-I Glass Inc's DOH suggests some variability in inventory management performance. It is essential for the company to continuously monitor and optimize its inventory levels to achieve a healthy balance between maintaining sufficient stock to meet demand and minimizing carrying costs.