BorgWarner Inc (BWA)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		8.86	10.44	7.81	6.42	10.00
DOH	days	41.21	34.98	46.73	56.86	36.51

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.86
= 41.21

The days of inventory on hand (DOH) for BorgWarner Inc have fluctuated over the past five years. In 2023, the company had 41.21 days of inventory on hand, which decreased from 48.48 days in 2022. This could indicate an improvement in inventory management efficiency. However, compared to 2019 when the company had 36.51 days of inventory on hand, the DOH has increased over the past five years, reaching a peak of 56.86 days in 2020.

A lower DOH suggests that the company is selling its inventory more quickly, reducing the risk of obsolescence and potential write-downs. Conversely, a higher DOH indicates that the company may be holding excessive inventory levels, which ties up capital and may lead to increased storage costs.

Overall, BorgWarner Inc should closely monitor its inventory management practices to optimize its DOH and ensure a balance between meeting customer demand and controlling inventory costs.