SunCoke Energy Inc (SXC)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		8.87	9.44	9.16	8.81	8.28
DOH	days	41.16	38.65	39.85	41.43	44.08

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.87
= 41.16

The Days of Inventory on Hand (DOH) for SunCoke Energy Inc has shown a declining trend over the past five years, from 44.08 days as of December 31, 2020, to 41.16 days as of December 31, 2024. This indicates that the company has been able to manage its inventory more efficiently over time, holding fewer days' worth of inventory on hand.

A decreasing trend in DOH can suggest improved inventory management, faster inventory turnover, and potentially lower holding costs. It signifies that SunCoke Energy Inc may be optimizing its inventory levels by reducing excess inventory and maintaining a leaner inventory position.

However, it is essential to note that a very low DOH figure may also indicate potential risk of stockouts or disruptions in the supply chain. Therefore, SunCoke Energy Inc should aim to strike a balance between reducing inventory holding costs and ensuring sufficient inventory availability to meet customer demand.

Overall, the decreasing trend in Days of Inventory on Hand for SunCoke Energy Inc reflects positively on the company's inventory management practices and operational efficiency. Further analysis and comparison with industry benchmarks could provide more insights into the company's performance in this aspect.