Ecolab Inc (ECL)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		9.03	7.12	7.53	8.15	12.15
DOH	days	40.41	51.27	48.45	44.78	30.05

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.03
= 40.41

The trend of Ecolab, Inc.'s days of inventory on hand (DOH) over the last five years indicates fluctuations in managing its inventory levels efficiently. The DOH was 59.69 days at the end of 2023, showing an improvement compared to 74.10 days in 2022, 71.50 days in 2021, 67.93 days in 2020, and 63.00 days in 2019.

A decreasing trend in DOH is generally positive as it signifies that the company is selling its inventory more quickly or maintaining lower inventory levels, which can lead to cost savings and improved cash flow. On the other hand, a significantly low DOH figure may suggest potential stockouts or lost sales due to inadequate inventory levels.

Ecolab should continue monitoring its inventory management practices to ensure an optimal balance between holding enough inventory to meet demand and minimizing carrying costs. Further analysis of industry benchmarks and competitor performance in this area could provide valuable insights for the company's operational efficiency and financial performance.