Badger Meter Inc (BMI)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.87 | 4.06 | 4.38 | 4.51 | 4.51 | |
| DOH | days | 94.41 | 89.85 | 83.30 | 81.01 | 80.91 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.87
= 94.41
The days of inventory on hand (DOH) for Badger Meter Inc. have been gradually increasing over the past five years, from 114.56 days as of December 31, 2019, to 131.31 days as of December 31, 2023. This trend suggests that the company is holding onto its inventory for a longer period before selling it.
A higher DOH value could indicate potential inefficiencies in inventory management, such as overstocking or slow-moving inventory. It may also suggest that the company is facing challenges in selling its products within a reasonable timeframe.
It is important for Badger Meter Inc. to closely monitor its inventory levels and assess the reasons behind the increasing DOH. Efficiency in inventory management is crucial for maintaining liquidity, avoiding excess carrying costs, and ensuring product availability to meet customer demand. Further analysis and action may be needed to optimize inventory turnover and improve overall operational performance.
Peer comparison
Dec 31, 2023