Autoliv Inc (ALV)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 9.19 | 8.55 | 7.68 | 8.65 | 7.77 | |
| DOH | days | 39.72 | 42.68 | 47.50 | 42.21 | 46.99 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.19
= 39.72
Autoliv Inc's days of inventory on hand (DOH) has shown a decreasing trend over the past five years. As of December 31, 2020, the company had 46.99 days of inventory on hand, which decreased to 42.21 days by December 31, 2021. However, there was a slight increase to 47.50 days by December 31, 2022, followed by a decrease to 42.68 days by December 31, 2023, and further down to 39.72 days by December 31, 2024.
The decreasing trend in the days of inventory on hand indicates that Autoliv Inc has been managing its inventory more efficiently over the years, which could lead to cost savings and improved liquidity. It suggests that the company is turning its inventory into sales at a faster rate, which is a positive indicator of operational performance.
However, the company should continue to monitor its inventory management to ensure that it strikes a balance between maintaining adequate inventory levels to meet demand and avoiding excess inventory that could tie up capital. Overall, the downward trend in the days of inventory on hand reflects positively on Autoliv Inc's inventory management efficiency.
Peer comparison
Dec 31, 2024