United States Steel Corporation (X)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		6.71	7.76	7.40	6.96	7.30
DOH	days	54.42	47.04	49.34	52.43	49.97

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.71
= 54.42

Based on the provided data, United States Steel Corporation's Days of Inventory on Hand (DOH) has shown some fluctuations over the years.

As of December 31, 2020, the company had approximately 49.97 days worth of inventory on hand. This indicates that, on average, it took almost 50 days for the company to convert its inventory into sales during that period.

By December 31, 2021, the DOH increased slightly to 52.43 days. This suggests that the company may have experienced challenges in managing its inventory efficiently, potentially leading to a slower turnover rate.

However, by December 31, 2022, the DOH decreased to 49.34 days, showing an improvement in inventory management compared to the previous year.

Subsequently, as of December 31, 2023, the DOH further decreased to 47.04 days, indicating a more efficient utilization of inventory resources by the company.

On December 31, 2024, the DOH rose to 54.42 days, signaling a potential increase in the time it takes for the company to convert its inventory into sales. This could imply overstocking or issues with demand forecasting during that period.

Overall, the fluctuating trend in United States Steel Corporation's Days of Inventory on Hand highlights the importance of effective inventory management practices to ensure optimal utilization of resources and maintain a healthy cash flow position.