Ecolab Inc (ECL)

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		6.07	5.67	5.96	5.79	6.11	5.94	5.52	5.19	4.93	4.78	4.85	5.02	5.11	5.34	5.01	5.12	5.68	6.01	6.66	5.72
DOH	days	60.11	64.43	61.22	63.01	59.73	61.44	66.13	70.34	74.10	76.34	75.27	72.75	71.50	68.41	72.86	71.28	64.24	60.73	54.84	63.81

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.07
= 60.11

Days of Inventory on Hand (DOH) is a financial ratio that provides insight into how efficiently a company manages its inventory. For Ecolab Inc, the trend in DOH from March 31, 2020, to December 31, 2024, shows fluctuations in the number of days the company holds inventory before it is sold.

The DOH for Ecolab Inc ranged from 54.84 days to 76.34 days during this period. The company experienced an increase in DOH from March 31, 2020, to June 30, 2021, with the highest point being 76.34 days on September 30, 2022. This suggests that Ecolab Inc might have been carrying excess inventory or facing challenges in selling its products efficiently.

However, there was a decreasing trend in DOH from September 30, 2022, onwards, with the ratio declining to 60.11 days on December 31, 2024. This reduction in DOH indicates that Ecolab Inc may have improved its inventory management practices, leading to a more efficient use of its inventory.

Overall, monitoring the trend of Days of Inventory on Hand helps analysts assess how effectively Ecolab Inc is managing its inventory levels to meet customer demand and optimize working capital utilization. Further analysis and comparison with industry benchmarks could provide more insights into the company's inventory management efficiency.