Stepan Company (SCL)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.61 | 6.42 | 7.24 | 7.59 | 7.71 | 7.53 | 6.62 | 6.40 | 5.83 | 5.82 | 6.53 | 6.77 | 6.38 | 6.22 | 6.26 | 6.57 | 6.79 | 7.22 | 7.05 | 7.49 | |
| DOH | days | 55.23 | 56.85 | 50.45 | 48.09 | 47.32 | 48.49 | 55.11 | 57.02 | 62.62 | 62.73 | 55.93 | 53.93 | 57.19 | 58.69 | 58.30 | 55.56 | 53.73 | 50.56 | 51.79 | 48.71 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.61
= 55.23
Stepping Company's days of inventory on hand (DOH) has exhibited some fluctuations over the analyzed period from March 31, 2020, to December 31, 2024. The DOH started at 48.71 days on March 31, 2020, showing a slight increase to 51.79 days by June 30, 2020. From there, the trend continued upwards, reaching a peak of 62.73 days on September 30, 2022, and December 31, 2022.
However, a reversal in this trend was observed as the DOH decreased to 47.32 days by December 31, 2023, and remained relatively stable around this level in the following periods. Notably, the DOH dipped to its lowest point of 47.32 days on December 31, 2023, before climbing slightly to 50.45 days on June 30, 2024.
Overall, the trend indicates that Stepan Company managed its inventory more efficiently in the later periods of the analysis, reducing the number of days inventory was held on hand. This improvement could signal enhanced inventory management practices, potentially leading to cost savings and improved liquidity for the company.
Peer comparison
Dec 31, 2024