Vulcan Materials Company (VMC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.95 | 9.48 | 9.94 | 8.02 | 7.97 | |
| DOH | days | 45.93 | 38.52 | 36.73 | 45.53 | 45.80 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.95
= 45.93
The days of inventory on hand (DOH) for Vulcan Materials Company have shown some fluctuations over the past five years. In December 2020, the company had an inventory holding period of 45.80 days, which slightly decreased to 45.53 days by December 2021.
There was a notable improvement in efficiency by December 2022, as the DOH reduced to 36.73 days, indicating that Vulcan was managing its inventory more effectively. However, by December 2023, the DOH increased to 38.52 days, suggesting a slightly longer period of holding inventory.
The last data point, from December 2024, shows an increase in DOH to 45.93 days, which is back to a level similar to that in 2020. This increase may indicate challenges in managing inventory levels efficiently or changes in demand patterns affecting the company's inventory turnover.
Overall, while Vulcan Materials Company has experienced fluctuations in its DOH over the past five years, it is essential for the company to focus on maintaining optimal inventory levels to avoid excess holding costs and potential obsolescence.
Peer comparison
Dec 31, 2024