Caterpillar Inc (CAT)
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 | 2.58 | 2.47 | 2.42 | 2.38 | 2.54 | 2.36 | 2.40 | 2.46 | 2.53 | 2.44 | 2.49 | 2.46 | 2.55 | 2.66 | 2.82 | 2.97 | 3.25 | 3.08 | 3.16 | 3.03 | |
| DOH | days | 141.38 | 147.97 | 150.69 | 153.63 | 143.62 | 154.86 | 151.93 | 148.11 | 144.28 | 149.82 | 146.39 | 148.67 | 143.10 | 137.44 | 129.44 | 122.89 | 112.26 | 118.55 | 115.47 | 120.32 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.58
= 141.38
Days of inventory on hand (DOH) for Caterpillar Inc. has shown a fluctuating trend over the past eight quarters based on the data provided. The calculation reflects the average number of days it takes for the company to convert its inventory into sales.
In Q1 2022, Caterpillar had a DOH of 148.11 days, which decreased to 143.62 days in Q4 2022. However, there was a subsequent increase in DOH to 153.63 days by Q1 2023. This upward trend continued into Q2 and Q3 2023 with DOH reaching 150.69 and 147.97 days, respectively. Notably, in Q4 2023, the trend reversed with DOH dropping to 141.38 days.
The variations in DOH suggest potential changes in Caterpillar's inventory management efficiency. A lower DOH indicates that the company is selling its inventory more quickly, which could be a positive sign of efficient operations. Conversely, a higher DOH may suggest excess inventory levels, leading to potential risks like storage costs or obsolete inventory.
Further analysis of the factors influencing these fluctuations, such as production levels, sales performance, market demand, and supply chain disruptions, would provide more insight into Caterpillar's inventory management policies and overall business strategy.
Peer comparison
Dec 31, 2023
See also:
Caterpillar Inc Average Inventory Processing Period (Quarterly Data)