Phillips 66 (PSX)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		33.12	36.33	46.26	30.56	15.18
DOH	days	11.02	10.05	7.89	11.95	24.04

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 33.12
= 11.02

To analyze Phillips 66's days of inventory on hand (DOH) over the period from December 31, 2020, to December 31, 2024, we observe a decreasing trend.

In December 2020, the company had 24.04 days of inventory on hand. This figure dropped significantly to 11.95 days by December 2021, indicating improved inventory turnover efficiency.

Continuing this trend, the DOH decreased further to 7.89 days by December 2022, suggesting that Phillips 66 managed its inventory more effectively. However, by December 2023, there was a slight increase to 10.05 days, which could indicate a temporary slowdown in inventory turnover.

As of December 31, 2024, the DOH stood at 11.02 days, a slight increase from the previous year but still lower than the levels in 2020 and 2021, showing that the company has been successfully managing its inventory efficiency, despite the minor uptick.

Overall, the decreasing trend in Phillips 66's days of inventory on hand signifies improved inventory management and efficiency within the company over the specified period.