Barnes Group Inc (B)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.90 | 4.41 | 4.82 | 4.46 | 5.66 | |
| DOH | days | 93.51 | 82.77 | 75.72 | 81.86 | 64.48 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.90
= 93.51
Barnes Group Inc.'s days of inventory on hand (DOH) has exhibited some fluctuations over the past five years. The trend shows an increasing pattern from 2019 to 2020, followed by a decrease in 2021 and another increase in 2022. In 2023, the DOH reached 132.14 days, representing an elevated level compared to the previous years.
An elevated DOH may indicate that Barnes Group Inc. is carrying excess inventory or facing challenges in managing and selling its inventory efficiently. This could tie up working capital and increase holding costs, potentially impacting the company's profitability and liquidity.
Further analysis should be undertaken to understand the underlying reasons for the significant increase in DOH in 2023 and to develop strategies to optimize inventory management and improve overall operational efficiency.
Peer comparison
Dec 31, 2023