Enovis Corp (ENOV)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.88 | 4.15 | 10.86 | 5.61 | 5.89 | |
| DOH | days | 94.17 | 88.04 | 33.61 | 65.06 | 61.94 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.88
= 94.17
Based on the data provided, Enovis Corp's days of inventory on hand (DOH) has shown a general increasing trend over the last five years, indicating that the company is holding inventory for a longer period before it is sold.
In 2019, Enovis Corp had a DOH of 108.29 days, which increased to 115.65 days in 2020, followed by a significant jump to 126.46 days in 2021. This suggests that the company may have been experiencing challenges in managing its inventory efficiently, which led to inventory being held for a longer period.
The trend continued in 2022 with a DOH of 224.48 days and further increased to 238.86 days in 2023. A high DOH can indicate potential issues such as overstocking, sluggish sales, or inefficiencies in inventory management practices.
Enovis Corp should closely monitor its inventory levels and implement strategies to optimize inventory turnover to improve its liquidity, reduce storage costs, and avoid obsolescence. A high DOH can tie up capital in inventory and hinder the company's ability to respond quickly to changes in customer demand or market conditions.
Peer comparison
Dec 31, 2023