Carlisle Companies Incorporated (CSL)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 8.16 | 6.92 | 7.18 | 8.91 | 6.10 | |
| DOH | days | 44.71 | 52.76 | 50.83 | 40.96 | 59.87 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.16
= 44.71
The days of inventory on hand (DOH) for Carlisle Companies Inc. has shown a fluctuating trend over the past five years. In 2023, the DOH decreased to 44.71 days from 61.63 days in 2022, reflecting a significant improvement in inventory management efficiency. This reduction indicates that the company is now able to quickly turn over its inventory into sales.
Comparing 2023 to 2021, we see a more substantial decrease in DOH from 63.18 days to 44.71 days, suggesting a positive trend in inventory management effectiveness. This improvement may be attributed to better inventory control practices, streamlined processes, or stronger demand forecasting capabilities.
Although the DOH decreased from 2020 to 2021, indicating an improvement, the metric increased slightly in 2022 before decreasing significantly in 2023. Overall, the declining trend in DOH over the past two years signals that Carlisle Companies Inc. has been more successful in managing its inventory levels efficiently and optimizing its working capital.
It is important for the company to continue monitoring and improving its inventory management practices to ensure that it maintains an optimal balance between having enough inventory to meet customer demand while minimizing carrying costs and potential obsolescence. The recent improvements in DOH reflect positively on the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2023