PHINIA Inc. (PHIN)

Days of Inventory on Hand (DOH) is a key metric that indicates the average number of days a company holds its inventory before selling it. For PHINIA Inc., the trend in the DOH ratio has been improving over the period analyzed.

On March 31, 2024, PHINIA Inc. had an average of 61.61 days of inventory on hand, indicating that, on average, it took the company approximately 61.61 days to sell its inventory. By September 30, 2024, the DOH ratio had decreased to 59.69 days, suggesting that the company was able to turn over its inventory slightly faster.

The most significant improvement was seen by December 31, 2024, where the DOH ratio further decreased to 53.22 days. This reduction in days of inventory on hand could be attributed to more efficient inventory management practices by PHINIA Inc., such as better demand forecasting, streamlined production processes, or effective inventory control.

Overall, the declining trend in PHINIA Inc.'s days of inventory on hand indicates that the company is managing its inventory more effectively, potentially resulting in lower carrying costs, reduced risk of obsolete inventory, and improved cash flow from quicker inventory turnover.

Peer comparison

Dec 31, 2024