Smith AO Corporation (AOS)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.29 | 6.02 | 6.57 | 8.23 | 8.39 | |
| DOH | days | 58.06 | 60.65 | 55.55 | 44.35 | 43.48 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.29
= 58.06
The days of inventory on hand (DOH) for A.O. Smith Corp. have exhibited a fluctuating trend over the past five years. In 2023, the DOH stood at 76.67 days, slightly decreased from the prior year's 77.75 days. This indicates that the company held its inventory for a shorter period in 2023 compared to 2022.
Looking back further, in 2021, the DOH was 73.34 days, showing a slight increase from 2020 when it was 61.29 days. This suggests an expansion in the time taken to sell inventory in 2021. However, in 2020, there was a notable uptick in DOH compared to the two preceding years, indicating potential inventory management challenges.
Furthermore, the consistent DOH values of around 61 days in 2019 and 2020 suggest that the company was able to manage its inventory efficiently during this period. Overall, fluctuations in DOH can provide insights into the company's inventory management effectiveness and operational efficiency over the years.
Peer comparison
Dec 31, 2023