Alamo Group Inc (ALG)
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 | 3.57 | 3.34 | 3.24 | 3.27 | 3.29 | 3.27 | 3.21 | 3.20 | 3.23 | 3.04 | 3.05 | 2.93 | 3.12 | 3.29 | 3.51 | 3.48 | 3.79 | 3.62 | 3.50 | 3.23 | |
| DOH | days | 102.38 | 109.21 | 112.61 | 111.48 | 111.11 | 111.57 | 113.55 | 113.99 | 113.17 | 120.16 | 119.56 | 124.69 | 117.17 | 110.95 | 103.91 | 104.92 | 96.33 | 100.83 | 104.16 | 113.14 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.57
= 102.38
Alamo Group Inc's days of inventory on hand (DOH) has shown some fluctuations over the periods presented in the data. The trend indicates a relatively stable DOH in the range of around 100 to 120 days, with some minor variations. It is observed that the company managed to reduce its inventory holding period from around 117 days in December 2021 to approximately 102 days by December 2024. This suggests an improvement in inventory management efficiency during this period.
Overall, the trend in Alamo Group Inc's DOH reflects a reasonable control over inventory levels. A decreasing trend in DOH signifies that the company is selling its products more quickly relative to holding them in inventory, which can lead to reduced carrying costs and better cash flow management. Conversely, an increasing trend in DOH may indicate slower inventory turnover and potential risks related to excess or obsolete inventory. It is important for the company to monitor its inventory management practices to ensure optimal levels that align with demand and supply dynamics in its industry.
Peer comparison
Dec 31, 2024