AGCO Corporation (AGCO)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.54 | 3.28 | 3.13 | 3.13 | 3.43 | 3.13 | 2.99 | 3.08 | 3.75 | 3.43 | 3.45 | 3.62 | 4.15 | 2.80 | 2.54 | 2.65 | 2.83 | 3.56 | 3.43 | 3.67 | |
| DOH | days | 103.24 | 111.45 | 116.51 | 116.79 | 106.43 | 116.44 | 122.04 | 118.68 | 97.27 | 106.47 | 105.89 | 100.84 | 87.91 | 130.28 | 143.97 | 137.60 | 129.06 | 102.58 | 106.37 | 99.57 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.54
= 103.24
To analyze AGCO Corp.'s days of inventory on hand (DOH) over the past eight quarters, we observe a fluctuating trend. The company's inventory turnover has varied, with fluctuations in inventory management efficiency. In Q4 2023, AGCO Corp. reported a DOH of 118.09 days, showing a decrease compared to the previous quarter's 126.21 days.
Throughout 2022, the DOH remained relatively high, peaking at 139.02 days in Q3 and gradually declining to 120.65 days in Q4. However, in 2023, the DOH increased again, reaching 131.98 days in Q1 and peaking at 131.42 days in Q2. This fluctuation may indicate challenges in managing inventory levels efficiently.
A high DOH value suggests that AGCO Corp. may be holding excess inventory, potentially tying up working capital and indicating inefficiencies in inventory management. It is essential for the company to closely monitor and adjust its inventory levels to optimize its working capital and operational efficiency. Further analysis of the company's inventory turnover and supply chain processes may provide insights into improving inventory management practices.
Peer comparison
Dec 31, 2023