Belden Inc (BDC)
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 | 4.24 | 4.83 | 4.84 | 4.54 | 4.95 | 4.78 | 4.19 | 4.01 | 4.43 | 4.57 | 4.37 | 4.44 | 4.76 | 5.00 | 5.15 | 5.21 | 5.78 | 4.56 | 4.30 | 4.09 | |
| DOH | days | 86.02 | 75.57 | 75.45 | 80.34 | 73.76 | 76.28 | 87.17 | 90.94 | 82.38 | 79.89 | 83.49 | 82.19 | 76.72 | 73.06 | 70.91 | 70.07 | 63.12 | 80.11 | 84.92 | 89.23 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.24
= 86.02
To analyze Belden Inc's days of inventory on hand (DOH), we calculate the average DOH for each quarter over the past two years:
- Average DOH for Q4 2023 to Q1 2023 = (86.02 + 75.57 + 75.45 + 80.34) / 4 = 79.345 days
- Average DOH for Q4 2022 to Q1 2022 = (73.76 + 75.98 + 86.50 + 89.88) / 4 = 81.28 days
Comparing these averages, we observe a decrease in the average DOH from 81.28 days in Q4 2022 to Q1 2022 to 79.345 days in Q4 2023 to Q1 2023. This decline suggests that Belden Inc has been more efficient in managing its inventory levels over the recent quarters.
A lower DOH indicates that the company is selling its inventory at a faster rate, reducing the need for excess inventory holdings. This can be a positive sign as it can lead to lower carrying costs and potential improvements in cash flow.
However, a continued monitoring of this metric is essential to ensure that the decrease in DOH is not due to declining sales or inventory shortages, which could negatively impact the company's operations. An optimal balance between inventory management and meeting customer demand should be maintained for sustainable growth and profitability.
Peer comparison
Dec 31, 2023