CNH Industrial N.V. (CNH)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.79 | 2.48 | 2.63 | 2.65 | 3.03 | 2.64 | 2.65 | 2.83 | 3.45 | 3.51 | 3.32 | 3.23 | 2.38 | 0.85 | 1.10 | 1.40 | 1.85 | 3.09 | 2.99 | 2.86 | |
| DOH | days | 130.76 | 147.24 | 138.86 | 137.64 | 120.44 | 138.36 | 137.53 | 129.15 | 105.82 | 104.01 | 109.83 | 112.85 | 153.41 | 430.99 | 331.10 | 260.66 | 197.10 | 118.31 | 121.88 | 127.53 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.79
= 130.76
The days of inventory on hand (DOH) for CNH Industrial N.V. provides insight into how efficiently the company manages its inventory levels. From March 31, 2020, to December 31, 2024, the trend in DOH fluctuated significantly.
The DOH started at 127.53 days in March 2020 and decreased gradually to 104.01 days by September 2022, indicating an improvement in inventory turnover and efficiency. However, by March 2023, the DOH increased to 129.15 days, suggesting a potential buildup of inventory.
Subsequently, the DOH continued to rise to peak levels, reaching 430.99 days by September 2021, indicating a substantial amount of inventory relative to sales. This spike was likely due to challenges such as supply chain disruptions or overstocking.
From September 2021 to December 2024, the trend in DOH fluctuated within a range, showing some volatility in inventory management practices. The DOH hovered around 130-150 days, pointing to a moderate level of inventory efficiency.
In conclusion, CNH Industrial N.V. experienced fluctuations in its DOH over the period, indicating varying efficiency levels in managing inventory. It is essential for the company to strike a balance between maintaining adequate inventory levels to meet demand and minimizing excess inventory to improve overall operational efficiency and financial performance.
Peer comparison
Dec 31, 2024