Now Inc (DNOW)
Days of inventory on hand (DOH)
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Inventory turnover | 5.21 | 5.00 | 4.52 | 4.14 | 4.88 | 4.28 | 4.15 | 4.21 | 4.28 | 4.28 | 4.38 | 4.58 | 5.10 | 4.99 | 4.56 | 4.56 | 5.06 | 4.93 | 5.15 | 5.13 | |
DOH | days | 70.09 | 73.00 | 80.77 | 88.16 | 74.80 | 85.29 | 87.93 | 86.61 | 85.32 | 85.23 | 83.26 | 79.73 | 71.57 | 73.12 | 80.11 | 80.07 | 72.06 | 74.07 | 70.93 | 71.20 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.21
= 70.09
Now Inc's days of inventory on hand (DOH) has shown some fluctuation over the period from March 31, 2020, to December 31, 2024. The trend indicates some variability in managing inventory levels.
From March 31, 2020, to June 30, 2022, the DOH increased steadily from 71.20 days to 83.26 days, reaching its peak. This could suggest that Now Inc might have been carrying excess inventory during this period, which could tie up capital and potentially lead to increased holding costs.
However, from June 30, 2022, to December 31, 2024, there was a decrease in the DOH from 83.26 days to 70.09 days. This reduction may indicate a more efficient management of inventory levels, allowing the company to turn over its inventory quicker and reduce the risk of obsolete inventory.
The spike in DOH to 88.16 days on March 31, 2024, followed by a decrease to 73.00 days on September 30, 2024, and a further drop to 70.09 days on December 31, 2024, may suggest some volatility or challenges in managing inventory effectively during this period.
Overall, a lower DOH signifies efficient inventory management, whereas a higher DOH may indicate potential issues such as overstocking or slowing sales. Now Inc should continue to monitor and adjust its inventory management practices to optimize working capital and maximize profitability.
Peer comparison
Dec 31, 2024