Alamo Group Inc (ALG)
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 | 3.96 | 3.95 | 3.87 | 3.86 | 3.88 | 3.68 | 3.71 | 3.57 | 3.81 | 4.03 | 4.30 | 4.28 | 4.43 | 4.44 | 4.30 | 3.95 | 3.84 | 4.75 | 4.68 | 4.44 | |
| DOH | days | 92.09 | 92.49 | 94.26 | 94.60 | 94.00 | 99.22 | 98.36 | 102.27 | 95.89 | 90.61 | 84.85 | 85.37 | 82.33 | 82.20 | 84.92 | 92.48 | 94.93 | 76.77 | 78.00 | 82.26 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.96
= 92.09
The days of inventory on hand (DOH) for Alamo Group Inc. have shown a fluctuating trend over the past eight quarters. In Q4 2023, the DOH decreased to 111.47 days compared to 113.99 days in Q1 2023, indicating an improvement in inventory management efficiency. This decrease follows a slight increase in Q3 2023 from the previous quarter.
When compared to the same quarter last year (Q4 2022), there has been a noticeable decrease in DOH from 113.17 days to 111.47 days, signifying a potential enhancement in the company's inventory turnover. However, it is worth mentioning that there was an uptrend in DOH throughout the first two quarters of 2022, reaching its peak at 124.69 days in Q1 2022.
Overall, the recent decrease in DOH suggests that Alamo Group Inc. may be effectively managing its inventory levels and turnover, which could lead to lower carrying costs and improved liquidity. The company should continue monitoring its inventory levels closely to sustain this positive trend and optimize its working capital management.
Peer comparison
Dec 31, 2023