Deere & Company (DE)
Days of inventory on hand (DOH)
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.60 | 0.63 | 0.55 | 0.51 | 0.46 | 0.53 | 0.41 | 0.40 | 0.44 | 0.52 | 1.58 | 2.67 | 3.80 | 5.59 | 5.01 | 4.76 | 4.76 | 5.22 | 4.55 | 4.32 | |
| DOH | days | 605.53 | 582.97 | 662.41 | 708.91 | 799.31 | 682.67 | 881.43 | 904.49 | 822.81 | 695.83 | 231.65 | 136.70 | 96.13 | 65.29 | 72.79 | 76.70 | 76.65 | 69.98 | 80.24 | 84.51 |
January 28, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.60
= 605.53
Days of inventory on hand (DOH) represents the average number of days it takes for a company to sell its inventory. A lower DOH indicates a more efficient inventory management. Analyzing the trend of DOH for Deere & Co. over the past quarters, we observe some fluctuations in the metric.
In Q2 2022, the company had a DOH of 105.65 days, which is relatively high and indicates a slower rate of inventory turnover. Subsequently, in Q3 2022, the DOH decreased to 100.47 days, showing a slight improvement. However, in Q4 2022, the DOH increased to 87.22 days, suggesting a more efficient inventory management.
Moving into 2023, the DOH started to increase again, with Q1 2023 showing a value of 99.76 days and Q2 2023 with 91.84 days. These figures demonstrate a lengthening in the time it takes to sell inventories. In Q3 2023, the DOH slightly increased to 88.15 days, only to drop to 78.50 days in Q4 2023, which is a positive sign of more efficient inventory management practices.
Finally, in Q1 2024, the DOH stood at 87.67 days, which is a moderate increase compared to the previous quarter but still higher than the ideal level. Overall, despite some fluctuations, Deere & Co. seems to be making efforts to optimize its inventory management, but there is room for further improvement to ensure a more streamlined and cost-effective supply chain process.
Peer comparison
Jan 28, 2024