Advanced Energy Industries Inc (AEIS)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.64 | 3.16 | 3.11 | 2.73 | 3.95 | |
| DOH | days | 138.08 | 115.37 | 117.31 | 133.73 | 92.44 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.64
= 138.08
Based on the data provided, Advanced Energy Industries Inc's days of inventory on hand (DOH) has shown some fluctuations over the five-year period from 2020 to 2024.
- In December 2020, the company had 92.44 days of inventory on hand, indicating that, on average, it took around 92 days to sell or use up its inventory.
- By December 2021, the DOH had increased to 133.73 days, suggesting that it took a longer time for the company to turn its inventory into sales.
- The DOH decreased slightly to 117.31 days by December 2022, before further declining to 115.37 days by December 2023, showing an improvement in inventory management efficiency.
- However, by December 2024, the DOH had increased to 138.08 days, indicating a potential buildup of inventory that may require closer monitoring.
Overall, the trend in Advanced Energy Industries Inc's DOH over the five-year period suggests some variability in inventory management effectiveness. It is important for the company to strike a balance in maintaining sufficient inventory levels to meet demand while avoiding excessive holding costs associated with excess inventory. Further analysis of the reasons behind these fluctuations would provide valuable insights into the company's operational efficiency and potential areas for improvement.
Peer comparison
Dec 31, 2024