Stepan Company (SCL)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.61 | 7.71 | 5.83 | 6.38 | 6.79 | |
| DOH | days | 55.23 | 47.32 | 62.62 | 57.19 | 53.73 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.61
= 55.23
The days of inventory on hand (DOH) for Stepan Company has shown some fluctuations over the past five years. In December 31, 2020, the DOH stood at 53.73 days, which increased to 57.19 days by December 31, 2021. Subsequently, by December 31, 2022, the DOH further increased to 62.62 days. However, there was a notable decrease in inventory holding periods by December 31, 2023, with the DOH dropping to 47.32 days. Finally, as of December 31, 2024, the DOH increased again to 55.23 days.
Overall, the trend in Stepan Company's DOH indicates a rise in the time taken to sell its inventory from 2020 to 2022, followed by a significant improvement in 2023, before showing a moderate increase in 2024. This analysis suggests that inventory management strategies may have been adjusted, impacting the company's operational efficiency and working capital management. Further investigation into the factors influencing these fluctuations could provide insights into the company's inventory control and supply chain management practices.
Peer comparison
Dec 31, 2024