Ametek Inc (AME)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.37 | 3.67 | 3.84 | 4.72 | 5.36 | |
| DOH | days | 83.53 | 99.36 | 95.17 | 77.26 | 68.11 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.37
= 83.53
The days of inventory on hand (DOH) for Ametek Inc has shown an increasing trend over the years, starting at 68.11 days as of December 31, 2020, and reaching 83.53 days by December 31, 2024. This signifies that the company is holding onto inventory for a longer period before selling it.
The gradual increase in DOH may indicate potential issues related to inventory management, such as overstocking, slower sales, or ineffective forecasting. A high DOH value suggests that the company may be tying up more capital in inventory, leading to higher carrying costs and potentially impacting cash flow.
Investors and stakeholders should closely monitor the DOH trend to assess the efficiency of Ametek Inc's inventory management practices and their impact on the company's overall financial performance. Additional analysis and comparison with industry benchmarks would provide further insights into the company's operational effectiveness.
Peer comparison
Dec 31, 2024