AAON Inc (AAON)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.55 | 3.92 | 3.64 | 5.24 | 5.57 | |
| DOH | days | 80.24 | 93.10 | 100.29 | 69.63 | 65.58 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.55
= 80.24
The days of inventory on hand (DOH) for AAON Inc. have shown a fluctuating trend over the past five years. In 2023, AAON Inc. had 101.29 days of inventory on hand, showing an improvement compared to 2022 when it was at 111.50 days. However, the DOH has been increasing steadily since 2019 when it was at 76.78 days, reaching a peak of 119.86 days in 2021.
A high DOH value may indicate that AAON Inc. is holding excess inventory, potentially tying up capital and leading to increased holding costs. On the other hand, a low DOH value may suggest the risk of stockouts and potential disruptions in the supply chain. Therefore, AAON Inc. should carefully manage its inventory levels to optimize working capital and ensure efficient operations.
Peer comparison
Dec 31, 2023