Westlake Chemical Corporation (WLK)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		6.37	6.28	5.89	7.06	7.33
DOH	days	57.32	58.11	62.00	51.70	49.82

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.37
= 57.32

The Days of Inventory on Hand (DOH) for Westlake Corporation have been relatively stable over the past five years, ranging from 49.82 days in 2019 to 62.00 days in 2021. A higher DOH indicates that the company is holding onto inventory for a longer period before selling it, which may tie up capital and lead to higher carrying costs. Conversely, a lower DOH may suggest efficient inventory management but could also indicate potential stockouts or production disruptions.

In 2023, Westlake Corporation's DOH decreased to 57.32 days from 58.11 days in 2022, implying a slight improvement in inventory turnover efficiency. However, it is important to consider industry benchmarks and operational context to determine the optimal level of inventory management for the company. Further analysis of inventory turnover ratios and comparisons with competitors can provide additional insights into Westlake Corporation's inventory management effectiveness and operational performance.