Enovis Corp (ENOV)

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 1.85 1.55 1.40 1.30 1.53 1.49 1.53 1.58 2.62 3.71 4.83 2.73 2.89 2.70 3.03 3.01 3.16 3.36 3.27 3.51
DOH days 197.61 234.79 260.80 280.07 238.86 244.59 237.97 230.45 139.38 98.49 75.50 133.85 126.46 135.13 120.47 121.40 115.65 108.59 111.75 103.98

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.85
= 197.61

The days of inventory on hand (DOH) ratio for Enovis Corp has fluctuated over the past few years.

From March 31, 2020, to June 30, 2021, the DOH remained relatively stable, ranging from around 103 to 121 days. This indicates that the company was able to maintain its inventory levels efficiently during this period.

However, from September 30, 2021, to March 31, 2024, there was a significant increase in the DOH ratio, reaching a peak of 280 days by March 31, 2024. This suggests that Enovis Corp may be carrying excess inventory, which could tie up capital and lead to increased holding costs and potential obsolescence risks.

The sudden increase in DOH from March 31, 2023, to March 31, 2024, from 230 to 280 days, is particularly concerning and may warrant further investigation into the company's inventory management practices and supply chain efficiency.

Subsequently, there was a slight decrease in the DOH ratio by the end of December 31, 2024, to 197 days, indicating a potential improvement in managing inventory levels.

Overall, the upward trend in the DOH ratio over the years signifies a need for Enovis Corp to optimize its inventory turnover and control its stocking levels more effectively to enhance operational efficiency and financial performance.