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.