Brunswick Corporation (BC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.98 | 3.23 | 3.31 | 3.46 | 4.40 | |
| DOH | days | 122.34 | 112.97 | 110.39 | 105.48 | 82.89 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.98
= 122.34
The days of inventory on hand (DOH) for Brunswick Corporation have been fluctuating over the past five years. The company's DOH increased from 82.89 days on December 31, 2020, to 105.48 days on December 31, 2021. This upward trend continued in the following years, with DOH reaching 110.39 days on December 31, 2022, 112.97 days on December 31, 2023, and 122.34 days on December 31, 2024.
A higher DOH indicates that Brunswick Corporation is taking longer to sell its inventory, which could potentially lead to higher carrying costs and tie up cash flow. It may also imply that the company is experiencing challenges in managing its inventory efficiently or that demand for its products is slowing down.
Management should closely monitor the trend in DOH and take necessary actions to optimize inventory levels to ensure profitability and liquidity. This may involve revising production schedules, improving inventory management practices, or reassessing sales and marketing strategies to align with customer demand.
Peer comparison
Dec 31, 2024