BWX Technologies Inc (BWXT)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 50.83 | 68.46 | 73.40 | 96.55 | 103.21 | |
| DOH | days | 7.18 | 5.33 | 4.97 | 3.78 | 3.54 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 50.83
= 7.18
The Days of Inventory on Hand (DOH) for BWX Technologies Inc have shown an increasing trend from 3.54 days as of December 31, 2020, to 7.18 days as of December 31, 2024. This indicates that the company is taking longer to sell its inventory over the period under review. A higher DOH can imply potential issues such as overstocking, slower sales, or inefficient inventory management.
The gradual increase in DOH could signal a need for the company to reassess its inventory management practices to ensure optimal levels. It may also indicate a need to improve forecasting accuracy and streamline operations to minimize carrying costs associated with excess inventory.
Overall, the consistent rise in DOH for BWX Technologies Inc warrants close monitoring and proactive measures to address any underlying inventory management challenges and optimize working capital efficiency.
Peer comparison
Dec 31, 2024