Allegion PLC (ALLE)
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 | 6.77 | 6.27 | 6.13 | 6.04 | 5.63 | 5.41 | 5.63 | 5.92 | 6.17 | 5.17 | 5.73 | 5.76 | 6.20 | 7.96 | 7.90 | 8.76 | 8.57 | 7.77 | 7.48 | 7.60 | |
| DOH | days | 53.88 | 58.24 | 59.55 | 60.40 | 64.80 | 67.53 | 64.86 | 61.61 | 59.17 | 70.66 | 63.66 | 63.34 | 58.89 | 45.86 | 46.23 | 41.69 | 42.60 | 46.95 | 48.83 | 48.03 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.77
= 53.88
Allegion plc's days of inventory on hand (DOH) have exhibited a decreasing trend over the past eight quarters, indicating improved efficiency in managing inventory levels. In Q4 2023, the company held inventory for an average of 77.35 days, down from 82.73 days in Q3 2023. This suggests that Allegion has been able to sell its inventory quicker, potentially minimizing carrying costs and risk of obsolescence.
Comparing to the same quarter in the previous year, Q4 2022, the DOH has decreased significantly from 89.68 days to 77.35 days, showcasing a positive trend in Allegion's inventory management practices.
Overall, the declining trend in DOH reflects Allegion's ability to effectively control inventory levels, which can lead to improved cash flows and profitability. Nevertheless, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of Allegion's inventory management efficiency.