Avery Dennison Corp (AVY)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 8.22 | 7.98 | 8.16 | 8.55 | 10.11 | |
| DOH | days | 44.42 | 45.76 | 44.72 | 42.71 | 36.10 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.22
= 44.42
Avery Dennison Corp's days of inventory on hand (DOH) has shown a fluctuating trend over the past five years. The company has seen an increase in its DOH metric from 36.10 days in 2019 to 45.76 days in 2022, indicating that the company was holding inventory for a longer period in 2022 compared to the previous year. However, in 2023, the DOH decreased to 44.42 days.
The increase in DOH from 2019 to 2022 suggests that Avery Dennison may have been experiencing challenges in efficiently managing its inventory levels, potentially leading to increased carrying costs and higher risk of obsolescence. The decrease in DOH in 2023 could be a positive sign, indicating a more optimal inventory management approach.
Overall, Avery Dennison Corp's DOH indicates that the company has been holding inventory for a moderate period relative to its sales levels. Further analysis of the company's inventory turnover ratio and comparisons with industry benchmarks could provide additional insights into the efficiency of its inventory management practices.
Peer comparison
Dec 31, 2023