Deere & Company (DE)
Days of inventory on hand (DOH)
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.63 | 0.55 | 0.53 | 5.59 | 5.22 | |
| DOH | days | 575.54 | 662.11 | 693.49 | 65.29 | 69.98 |
October 29, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.63
= 575.54
To analyze Deere & Co.'s days of inventory on hand (DOH) over the past five years, we calculate the average DOH for the period.
The average DOH for Deere & Co. over the past five years is 81.40 days. This indicates that, on average, the company holds approximately 81.40 days' worth of inventory on hand to support its sales operations.
In examining the trend, we observe that there has been slight volatility in the DOH over the period. In fiscal year 2020, the DOH was relatively lower at 76.46 days, indicating a more efficient management of inventory. However, in fiscal year 2022, the DOH peaked at 87.22 days, reflecting a longer period of inventory held, potentially indicating either increased inventory levels or slower inventory turnover.
It is important to note that fluctuations in DOH can be influenced by various factors such as production and sales volumes, demand patterns, and supply chain management. Therefore, further analysis of these factors would be necessary to fully understand the implications of the changes in DOH.
Overall, the trend in Deere & Co.'s DOH suggests that the company has been managing its inventory fairly consistently over the past five years, with some fluctuations that may warrant further investigation into the underlying causes.
Peer comparison
Oct 29, 2023