Allegion PLC (ALLE)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.85 | 5.70 | 6.22 | 8.31 | 8.62 | |
| DOH | days | 53.25 | 64.08 | 58.71 | 43.92 | 42.32 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.85
= 53.25
The days of inventory on hand (DOH) for Allegion plc has shown fluctuating trends over the past five years. In 2019, the company held inventory for an average of 61.51 days, which increased to 67.05 days in 2020. Subsequently, there was a further increase to 83.52 days in 2021 before decreasing to 89.68 days in 2022. In the latest reporting period of December 31, 2023, Allegion plc managed to reduce its DOH to 77.35 days.
The overall pattern indicates some variability in managing inventory levels within the company. A higher DOH may suggest inventory inefficiencies or difficulties in sales forecasting, while a lower DOH could imply efficient inventory management or possibly shortages impacting sales. It is essential for Allegion plc to continuously monitor and optimize their inventory levels to strike a balance between holding costs and ensuring product availability to meet customer demands effectively.