Ametek Inc (AME)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		4.37	4.12	3.99	3.85	3.72	3.83	3.74	3.65	3.84	3.83	4.00	4.38	4.72	4.63	4.50	4.90	5.36	5.28	5.11	5.11
DOH	days	83.53	88.69	91.56	94.93	98.13	95.42	97.58	99.96	95.17	95.35	91.19	83.37	77.26	78.80	81.05	74.49	68.11	69.19	71.44	71.41

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.37
= 83.53

Ametek Inc's days of inventory on hand (DOH) has shown fluctuations over the past few years. From March 31, 2020, to June 30, 2022, there was a general increasing trend in DOH, indicating that the company was holding inventory for a longer period before selling it. This could suggest potential issues with inventory management or demand forecasting during this period.

However, from September 30, 2022, to December 31, 2024, there was a decreasing trend in DOH, implying that the company was able to reduce the number of days it held inventory before selling it. This improvement could indicate more efficient inventory management practices or better demand forecasting, leading to lower carrying costs and potential risks associated with excess inventory.

It is essential for Ametek Inc to strike a balance between carrying enough inventory to meet customer demand and minimizing excess inventory to optimize working capital efficiency. Monitoring and managing the DOH metric effectively can help the company improve its inventory turnover ratio and overall financial performance.