CNH Industrial N.V. (CNH)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.80 | 3.04 | 3.45 | 3.34 | 3.57 | |
| DOH | days | 130.58 | 120.20 | 105.92 | 109.15 | 102.33 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.80
= 130.58
Days of Inventory on Hand (DOH) for CNH Industrial N.V. has shown a gradually increasing trend over the past five years. Starting at 102.33 days as of December 31, 2020, it rose to 130.58 days by December 31, 2024, indicating an extended period taken to sell inventory.
This increase in DOH suggests that CNH Industrial N.V. may be facing challenges in efficiently managing its inventory levels. Higher DOH can tie up working capital and lead to increased storage costs, potentially impacting the company's overall profitability.
It is essential for CNH Industrial N.V. to closely monitor and optimize its inventory management practices to reduce DOH and enhance its operational efficiency. Strategies such as implementing just-in-time inventory systems, improving demand forecasting, and streamlining production processes could help in lowering DOH and improving the company's financial performance in the future.
Peer comparison
Dec 31, 2024