Visteon Corp (VC)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		11.78	11.63	9.74	9.61	13.01
DOH	days	30.97	31.37	37.49	37.96	28.05

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.78
= 30.97

The days of inventory on hand (DOH) for Visteon Corp has shown a fluctuating trend over the past five years. Starting at 28.05 days on December 31, 2020, the DOH increased steadily to reach 37.96 days by the end of 2021, and remained relatively stable around 37-38 days in 2022. Subsequently, in 2023 and 2024, there was a slight decline in DOH to 31.37 days and 30.97 days respectively.

The increase in DOH from 2020 to 2021 may indicate that Visteon Corp was holding inventory for a longer period, which could tie up more capital and potentially signal inefficiencies in inventory management. The subsequent slight decrease in 2023 and 2024 suggests some improvement in managing inventory levels.

Overall, while the DOH metric shows variability, it is important for Visteon Corp to continue monitoring and optimizing its inventory levels to strike a balance between ensuring product availability and managing working capital efficiency.