Westlake Chemical Corporation (WLK)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		6.00	6.37	6.28	5.89	7.06
DOH	days	60.82	57.32	58.11	62.00	51.70

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.00
= 60.82

The days of inventory on hand (DOH) for Westlake Chemical Corporation have shown some fluctuations over the past five years. As of December 31, 2020, the company held inventory for an average of 51.70 days before selling it. This figure increased to 62.00 days by December 31, 2021, indicating a potential slowdown in inventory turnover.

However, there was a slight improvement in efficiency by December 31, 2022, with the DOH decreasing to 58.11 days. This trend continued into 2023, with the DOH further decreasing to 57.32 days, suggesting a more effective management of inventory levels.

Nonetheless, by December 31, 2024, the DOH had risen again to 60.82 days, potentially signaling a need for Westlake Chemical Corporation to monitor and optimize its inventory management strategies to maintain appropriate levels and turnover rates. Overall, fluctuations in the days of inventory on hand can provide insights into the company's inventory management efficiency and operational performance.