EMCOR Group Inc (EME)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 94.73 | 110.61 | 155.31 | 138.77 | 193.31 | |
| DOH | days | 3.85 | 3.30 | 2.35 | 2.63 | 1.89 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 94.73
= 3.85
Emcor Group, Inc.'s days of inventory on hand (DOH) have shown an increasing trend from 2019 to 2023. In 2019, the company held inventory for an average of 1.89 days, which increased to 2.63 days in 2020, and further to 2.35 days in 2021. The DOH peaked at 3.85 days in 2023, indicating that Emcor Group, Inc. is holding onto inventory for a longer period compared to the previous years. This gradual increase in DOH may suggest potential inefficiencies in managing inventory or slower inventory turnover, which could tie up working capital and increase holding costs for the company. Further analysis would be warranted to determine the reasons behind this trend and whether it aligns with the company's strategic objectives and industry norms.
Peer comparison
Dec 31, 2023