Now Inc (DNOW)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.93 | 4.32 | 4.19 | 4.27 | 4.34 | 4.34 | 4.45 | 4.61 | 5.16 | 5.06 | 4.63 | 4.63 | 6.33 | 6.35 | 6.37 | 6.18 | 5.39 | 4.51 | 4.22 | 3.97 | |
| DOH | days | 73.97 | 84.48 | 87.14 | 85.41 | 84.13 | 84.03 | 82.08 | 79.09 | 70.74 | 72.11 | 78.87 | 78.88 | 57.68 | 57.49 | 57.30 | 59.09 | 67.75 | 80.98 | 86.51 | 91.83 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.93
= 73.97
To analyze NOW Inc's days of inventory on hand (DOH), we observe that the DOH ratio fluctuated in the range of 74.80 to 87.93 days over the past eight quarters. The highest DOH was recorded in Q2 2023 at 87.93 days, while the lowest was in Q4 2023 at 74.80 days.
The trend indicates some variability in the management of inventory levels during this period. It is noteworthy that the DOH ratio has generally remained above 80 days for the last five quarters, suggesting a relatively higher level of inventory being held by NOW Inc.
A high DOH may imply slower inventory turnover, potentially tying up working capital and increasing carrying costs. It could also indicate inefficiencies in inventory management or challenges in forecasting demand accurately.
Further investigation into the drivers of inventory levels and management strategies would be beneficial to assess the impact of the DOH fluctuations on NOW Inc's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023