Steel Dynamics Inc (STLD)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		5.31	5.16	3.69	4.43	5.29
DOH	days	68.73	70.77	98.79	82.39	69.01

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.31
= 68.73

The days of inventory on hand (DOH) for Steel Dynamics Inc. have fluctuated over the past five years. In 2023, the DOH was 71.63 days, showing a slight increase compared to 2022 when it was 70.77 days.

When looking at a longer trend, we see that in 2021, the DOH spiked to 98.79 days, indicating that the company held inventory for a longer period before selling it. The decrease in 2022 and 2023 suggests an improvement in inventory management efficiency.

In 2020, the DOH was 82.39 days, higher than the previous and subsequent years, indicating a potential issue with inventory turnover during that period. However, in 2019, the DOH was 69.01 days, showing a more efficient inventory turnover compared to 2020.

Overall, fluctuations in the DOH for Steel Dynamics Inc. over the past five years suggest varying levels of inventory management effectiveness, with the company making improvements in recent years but experiencing challenges in others. It is essential for the company to continue monitoring and optimizing its inventory management to improve efficiency and reduce carrying costs.