Deere & Company (DE)
Days of inventory on hand (DOH)
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.81 | 0.63 | 0.55 | 0.53 | 5.59 | |
| DOH | days | 449.94 | 575.54 | 662.11 | 693.49 | 65.29 |
October 27, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.81
= 449.94
The days of inventory on hand (DOH) for Deere & Company have exhibited a declining trend over the past five years. In particular, the DOH decreased significantly from 693.49 days in 2021 to 449.94 days in 2024, indicating an improvement in managing inventory levels efficiently.
This downward trend suggests that Deere & Company has been more effective in managing its inventory, either through better inventory forecasting, production planning, or inventory control measures. A lower DOH value generally implies that the company is selling its products more quickly, which can lead to reduced carrying costs, lower obsolescence risk, and improved cash flow.
The substantial decrease in DOH over the period signifies that Deere & Company has likely implemented more robust inventory management strategies or operational improvements to streamline its supply chain processes. Overall, the declining DOH trend reflects positively on the company's operational efficiency and inventory management practices.
Peer comparison
Oct 27, 2024