Dril-Quip Inc (DRQ)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.59 | 1.82 | 1.66 | 1.27 | 1.44 | |
| DOH | days | 230.23 | 200.39 | 219.47 | 287.64 | 253.71 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.59
= 230.23
The days of inventory on hand (DOH) for Dril-Quip, Inc. have fluctuated over the past five years. In 2023, the company held inventory for an average of 230.23 days, showing an increase from the previous year's 200.39 days. This suggests that Dril-Quip took longer to sell its inventory in 2023 compared to 2022. However, when compared to 2021, the DOH decreased slightly from 219.47 days, indicating a more efficient inventory turnover in 2023.
In 2020, the company had a significantly higher DOH of 287.64 days, indicating a slower inventory turnover compared to 2023. This was a notable increase from 2019, where the DOH was 253.71 days. Overall, the trend in DOH for Dril-Quip shows some fluctuations, with possible implications for working capital management and efficiency of operations. Further analysis of inventory management strategies and demand forecasting may be warranted to optimize inventory levels and turnover.
Peer comparison
Dec 31, 2023