Danaher Corporation (DHR)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.23 | 8.15 | 7.65 | 7.79 | 8.69 | |
| DOH | days | 50.49 | 44.79 | 47.73 | 46.83 | 42.02 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.23
= 50.49
The days of inventory on hand (DOH) for Danaher Corp. has shown a consistent increasing trend over the past five years. The company's inventory turnover has been slowing down as indicated by the increase in DOH from 74.97 days in 2019 to 96.06 days in 2023.
This implies that the company is taking longer to sell its inventory, which could potentially lead to higher carrying costs and obsolete inventory issues. It may also indicate potential inefficiencies in the company's supply chain management or inventory control processes.
It is important for Danaher Corp. to closely monitor its inventory levels and implement strategies to improve inventory turnover, such as better demand forecasting, optimizing production processes, and adjusting procurement strategies. High DOH can tie up valuable working capital and impact the company's profitability and overall financial performance.
Peer comparison
Dec 31, 2023