Vulcan Materials Company (VMC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 7.95 | 8.44 | 8.64 | 8.85 | 9.48 | 10.26 | 9.85 | 9.96 | 9.94 | 10.39 | 9.84 | 8.79 | 8.02 | 7.41 | 8.00 | 8.08 | 7.97 | 7.90 | 8.16 | 7.89 | |
| DOH | days | 45.93 | 43.27 | 42.24 | 41.25 | 38.52 | 35.58 | 37.07 | 36.65 | 36.73 | 35.14 | 37.10 | 41.51 | 45.53 | 49.25 | 45.65 | 45.16 | 45.80 | 46.23 | 44.72 | 46.24 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.95
= 45.93
Days of Inventory on Hand (DOH) is an important ratio that measures how many days, on average, a company holds inventory before selling it. For Vulcan Materials Company, the trend of DOH over the past years shows some fluctuations.
From March 31, 2020, to September 30, 2021, the DOH remained relatively stable, ranging from around 46 to 49 days. It indicates that Vulcan Materials had a consistent inventory holding period during this period. However, a decrease in DOH was observed by the end of June 2022, with only 37.10 days, suggesting the company managed its inventory more efficiently and sold products faster.
The trend continued with further decreases in DOH, reaching the lowest point of 35.14 days by September 30, 2022. This sharp decline indicates significant improvements in inventory management, potentially reducing storage costs and the risk of obsolete inventory.
While there was a slight increase towards the end of 2023 and 2024, with DOH ranging from 36.65 to 45.93 days, Vulcan Materials Company maintained a relatively efficient inventory turnover compared to the earlier years.
Overall, monitoring the DOH trend helps assess Vulcan Materials' inventory management effectiveness, operational efficiency, and potential liquidity. The recent improvements in inventory turnover suggest the company may have optimized its supply chain and sales processes to enhance profitability and competitiveness in the industry.
Peer comparison
Dec 31, 2024