Dover Corporation (DOV)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.18 | 4.37 | 3.98 | 4.15 | 5.04 | |
| DOH | days | 87.29 | 83.55 | 91.62 | 88.05 | 72.47 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.18
= 87.29
The days of inventory on hand (DOH) for Dover Corporation has shown a fluctuating trend over the past five years. In 2020, the company held inventory for an average of 72.47 days, which increased to 88.05 days by the end of 2021. Subsequently, the DOH further rose to 91.62 days by the end of 2022. However, in the following two years, there was a slight decrease in the DOH, with 83.55 days recorded in 2023 and 87.29 days in 2024.
The increasing trend in 2021 and 2022 indicates that Dover Corporation may have been carrying a higher level of inventory relative to sales during those periods. This could potentially tie up more working capital and impact liquidity. The subsequent decreases in 2023 and 2024 suggest possible improvements in inventory management, leading to a more efficient use of resources.
Overall, it would be important for Dover Corporation to closely monitor its inventory levels and strive to strike a balance between maintaining adequate stock to meet customer demands and minimizing excess inventory to optimize working capital efficiency.
Peer comparison
Dec 31, 2024