Avery Dennison Corp (AVY)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.36 | 6.61 | 6.57 | 6.72 | 7.04 | |
| DOH | days | 57.35 | 55.21 | 55.56 | 54.32 | 51.86 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.36
= 57.35
The Days of Inventory on Hand (DOH) of Avery Dennison Corp has seen a gradual increase over the past five years, from 51.86 days as of December 31, 2020, to 57.35 days as of December 31, 2024. This indicates that the company is holding inventory for a longer period before it is sold or used in the production process.
A higher DOH may suggest that Avery Dennison Corp is facing challenges in efficiently managing its inventory levels, potentially leading to increased storage costs, obsolescence risks, and tying up capital that could be deployed elsewhere. It is essential for the company to analyze the underlying reasons for this trend and consider implementing strategies to optimize inventory management, such as improving demand forecasting, streamlining production processes, or enhancing inventory turnover.
Overall, the increasing trend in DOH for Avery Dennison Corp highlights the importance of continually monitoring and adjusting inventory management practices to maintain operational efficiency and financial health.
Peer comparison
Dec 31, 2024