Stepan Company (SCL)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 8.28 | 6.25 | 6.90 | 7.46 | 8.16 | |
| DOH | days | 44.08 | 58.41 | 52.87 | 48.91 | 44.72 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.28
= 44.08
The Days of Inventory on Hand (DOH) for Stepan Co. has displayed fluctuations over the past five years. In 2023, the company had 47.32 days of inventory on hand, showing an improvement from the previous year where it was 62.62 days. This suggests that Stepan Co. managed its inventory more efficiently in 2023 compared to 2022.
Comparing the current year to the figures from two years ago, Stepan Co. has also shown improvement from 57.19 days in 2021 to 47.32 days in 2023. This indicates that the company has made progress in optimizing its inventory levels over the past two years, potentially through better inventory management practices.
Looking further back, in 2020 and 2019, the company had 53.73 days and 48.93 days of inventory on hand, respectively. The trend over the five-year period demonstrates fluctuations in inventory management efficiency, with the company experiencing both increases and decreases in the days of inventory on hand.
Overall, the decreasing trend in the Days of Inventory on Hand for Stepan Co. from 2022 to 2023 and compared to two years ago reflects a positive development in inventory management, potentially indicating better control over inventory levels and operational efficiency within the company's supply chain.
Peer comparison
Dec 31, 2023