Avery Dennison Corp (AVY)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 7.83 | 7.62 | 7.39 | 7.13 | 7.98 | 8.04 | 8.01 | 8.03 | 8.16 | 8.15 | 8.29 | 8.09 | 8.55 | 9.02 | 8.30 | 8.63 | 10.11 | 11.53 | 11.04 | 10.44 | |
| DOH | days | 46.60 | 47.89 | 49.42 | 51.17 | 45.76 | 45.41 | 45.57 | 45.47 | 44.73 | 44.81 | 44.03 | 45.12 | 42.71 | 40.45 | 43.97 | 42.27 | 36.10 | 31.66 | 33.05 | 34.97 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.83
= 46.60
Avery Dennison Corp's days of inventory on hand (DOH) has shown some fluctuations over the past few years. The trend indicates an increase in DOH from 31.66 days as of December 2019 to 51.17 days as of March 2023, with some variability in between.
A higher DOH value suggests that the company is holding onto its inventory for a longer period before selling it. This could indicate potential issues such as slower sales, overstocking, or inefficiencies in inventory management. Generally, a higher DOH value may tie up working capital and lead to increased holding costs.
On the other hand, a lower DOH value, as observed in December 2019 (31.66 days), indicates that the company is moving its inventory more efficiently, potentially leading to lower holding costs and a more streamlined supply chain.
Analyzing DOH over multiple periods can provide insights into the company's inventory management practices and operational efficiency. It would be beneficial for Avery Dennison Corp to benchmark its DOH against industry standards and competitors to assess its performance in this area.
Peer comparison
Dec 31, 2023