Ametek Inc (AME)
Days of inventory on hand (DOH)
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Inventory turnover | 4.62 | 4.76 | 5.89 | 6.82 | 6.75 | |
DOH | days | 79.08 | 76.70 | 61.98 | 53.55 | 54.08 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.62
= 79.08
Ametek Inc's days of inventory on hand (DOH) have shown an increasing trend over the past five years, from 67.63 days in 2019 to 98.13 days in 2023. This indicates that the company is taking longer to sell its inventory, which may result in higher carrying costs and potential obsolescence risks. The continuous increase in DOH could suggest inefficiencies in inventory management, such as overstocking or slow-moving inventory. It is essential for the company to closely monitor and optimize its inventory levels to improve operational efficiency and maintain healthy liquidity.
Peer comparison
Dec 31, 2023
Company name
Symbol
DOH
Ametek Inc
AME
79.08
Cognex Corporation
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102.12
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