AGCO Corporation (AGCO)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.54 | 3.43 | 3.75 | 4.15 | 4.02 | |
| DOH | days | 103.24 | 106.43 | 97.27 | 87.92 | 90.88 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.54
= 103.24
AGCO Corp.'s days of inventory on hand (DOH) has shown variability over the past five years. The trend indicates an increase in DOH from 107.51 days in 2019 to 120.65 days in 2022, before decreasing to 118.09 days in 2023.
A higher DOH may suggest slower inventory turnover, indicating that AGCO Corp. is taking longer to convert its inventory into sales. This could potentially tie up more capital in inventory and increase the risk of holding obsolete or slow-moving inventory.
Conversely, a lower DOH implies a faster inventory turnover, which may indicate effective inventory management practices and better liquidity. However, excessively low DOH levels could also indicate stockouts or lost sales due to insufficient inventory.
Therefore, the fluctuation in AGCO Corp.'s DOH warrants further investigation to understand the underlying factors driving the changes and assess the efficiency of the company's inventory management strategies.
Peer comparison
Dec 31, 2023