Belden Inc (BDC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.48 | 4.24 | 4.95 | 4.43 | 4.76 | |
| DOH | days | 81.38 | 86.02 | 73.76 | 82.38 | 76.72 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.48
= 81.38
To analyze Belden Inc's days of inventory on hand (DOH) over the past five years:
1. In 2020, Belden Inc had 76.72 days of inventory on hand, indicating that, on average, it took the company nearly 77 days to sell its inventory.
2. By the end of 2021, the DOH increased to 82.38 days, signifying a lengthening of the time it takes for Belden Inc to convert its inventory to sales, possibly due to slower sales or increased inventory levels.
3. The DOH decreased in 2022 to 73.76 days, showing an improvement in the efficiency of inventory management compared to the previous year.
4. However, in 2023, the DOH rose significantly to 86.02 days, suggesting a potential risk of overstocking or slower sales, which could tie up capital in inventory.
5. By the end of 2024, the DOH remained high at 81.38 days, indicating that Belden Inc continued to face challenges in optimizing its inventory turnover and liquidity.
In summary, Belden Inc's DOH fluctuated over the past five years, with periods of both improvement and deterioration in inventory management efficiency. Persistent high DOH figures could suggest the need for the company to review its inventory levels and sales strategies to enhance working capital management.
Peer comparison
Dec 31, 2024