Smith AO Corporation (AOS)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.89 | 6.29 | 6.02 | 6.57 | 8.23 | |
| DOH | days | 62.02 | 58.06 | 60.65 | 55.55 | 44.35 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.89
= 62.02
The days of inventory on hand (DOH) for Smith AO Corporation has shown a gradual increase over the past five years.
Starting at 44.35 days on December 31, 2020, the DOH increased to 55.55 days by December 31, 2021, indicating that the company held inventory for a longer period before selling it. This trend continued with DOH reaching 60.65 days by December 31, 2022, and slightly decreasing to 58.06 days by December 31, 2023.
However, by December 31, 2024, the DOH increased again to 62.02 days, suggesting that Smith AO Corporation may be experiencing challenges in managing its inventory effectively or facing slower inventory turnover.
Overall, the increasing trend in DOH over the five-year period indicates the need for the company to reassess its inventory management practices to optimize working capital and operational efficiency.
Peer comparison
Dec 31, 2024