Olin Corporation (OLN)
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 | 7.19 | 6.49 | 6.27 | 6.70 | 8.07 | 8.26 | 8.09 | 8.17 | 8.11 | 7.98 | 9.42 | 9.50 | 9.48 | 10.21 | 8.97 | 8.70 | 8.33 | 8.44 | 8.58 | 8.39 | |
| DOH | days | 50.77 | 56.26 | 58.24 | 54.46 | 45.21 | 44.19 | 45.11 | 44.69 | 44.98 | 45.75 | 38.73 | 38.44 | 38.50 | 35.76 | 40.68 | 41.96 | 43.84 | 43.26 | 42.53 | 43.51 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.19
= 50.77
To analyze Olin Corp.'s days of inventory on hand (DOH) over the past eight quarters, we observe fluctuations in the metric. The DOH ranged from a low of 46.61 days in Q3 2022 to a high of 62.94 days in Q2 2023. Overall, there appears to be an upward trend in DOH in the most recent quarters, signaling potentially slower inventory turnover.
The increase from 47.41 days in Q1 2022 to 62.94 days in Q2 2023 indicates that Olin Corp. is holding inventory for a longer period. This prolonged inventory holding may result in higher carrying costs and tie up capital within the company.
Comparing year-over-year data, the DOH has generally increased, suggesting potential challenges in managing inventory efficiently. Olin Corp. may need to closely monitor and optimize its inventory management processes to reduce excess stock levels and improve cash flows.
Further analysis of industry benchmarks and comparison with competitors' inventory turnover ratios could provide additional insights into Olin Corp.'s inventory management performance and competitiveness within the market.
Peer comparison
Dec 31, 2023