Olin Corporation (OLN)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.19 | 8.07 | 8.11 | 9.66 | 8.60 | |
| DOH | days | 50.77 | 45.21 | 44.98 | 37.79 | 42.46 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.19
= 50.77
The days of inventory on hand (DOH) for Olin Corp. have shown some variability over the past five years. In 2023, the DOH increased to 55.31 days from 47.79 days in 2022, indicating that the company held inventory for a longer period in 2023. This may suggest potential challenges in managing inventory levels efficiently or changes in demand patterns.
Comparing 2023 to 2021 and 2020, the DOH metric has also increased. This upward trend in DOH could signify potential inefficiencies in inventory management, such as overstocking or slow-moving inventory, which could tie up working capital and impact profitability.
However, in comparison to 2019, where the DOH was 46.69 days, the 2023 DOH figure remains higher, indicating a longer period of inventory on hand. This could point towards Olin Corp. adjusting its inventory management strategies or facing challenges in aligning inventory levels with sales trends.
Overall, a rising trend in DOH over the past few years for Olin Corp. may warrant further investigation into the company's inventory management practices to optimize working capital utilization and operational efficiency.
Peer comparison
Dec 31, 2023