Visteon Corp (VC)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		11.63	9.74	9.61	13.01	15.51
DOH	days	31.37	37.49	37.96	28.05	23.53

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.63
= 31.37

The days of inventory on hand (DOH) for Visteon Corp. have fluctuated over the past five years. In 2023, Visteon Corp. had an inventory turnover of approximately 31.37 days, which represents the number of days it takes for the company to sell its average inventory. This indicates a slight improvement compared to the DOH of 37.49 days in 2022 and 37.96 days in 2021. However, it is worth noting that the DOH was lower in 2020 at 28.05 days and even lower in 2019 at 23.53 days.

A decreasing DOH generally indicates that a company is managing its inventory more efficiently, as it is able to sell its inventory more quickly. Conversely, an increasing DOH suggests that a company may be experiencing difficulties in selling its inventory, potentially leading to higher carrying costs and potential obsolescence risks.

Overall, Visteon Corp. should monitor its inventory management closely to ensure optimal levels that balance between meeting demand and minimizing carrying costs.