AAON Inc (AAON)
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 | 4.29 | 4.38 | 4.16 | 3.82 | 3.60 | 3.50 | 3.40 | 3.52 | 3.27 | 3.31 | 3.11 | 3.09 | 3.05 | 3.54 | 4.13 | 4.13 | 4.36 | 4.60 | 4.15 | 4.89 | |
| DOH | days | 85.14 | 83.35 | 87.76 | 95.44 | 101.29 | 104.30 | 107.44 | 103.58 | 111.50 | 110.39 | 117.27 | 118.30 | 119.86 | 103.22 | 88.34 | 88.45 | 83.66 | 79.38 | 87.92 | 74.62 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.29
= 85.14
Days of Inventory on Hand (DOH) is a financial metric used to evaluate how efficiently a company manages its inventory. It indicates the number of days it takes for a company to convert its inventory into sales. A lower DOH value suggests that a company is selling its inventory quickly, while a higher value indicates slower sales turnover.
Based on the provided data for AAON Inc, we can observe fluctuations in the DOH over the analyzed periods. In March 2020, the DOH was at 74.62 days, indicating that on average, AAON held its inventory for approximately 74 days before selling it. The DOH then increased to 119.86 days by December 2021, signifying a slowdown in inventory turnover.
Subsequently, AAON Inc managed to reduce its DOH to 83.35 days by December 2024. This improvement suggests that the company may have taken measures to streamline its inventory management processes and enhance sales efficiency.
Overall, AAON's DOH has shown variability over the analysis period, reflecting fluctuations in inventory management and sales efficiency. It is important for the company to strike a balance between adequately stocking inventory to meet demand and avoiding excess holding costs associated with maintaining high levels of inventory. Continued monitoring and optimization of inventory turnover will be crucial for AAON to improve its operational effectiveness and financial performance.
Peer comparison
Dec 31, 2024