ESAB Corp (ESAB)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.22 | 4.48 | 4.10 | 3.79 | 4.04 | |
| DOH | days | 86.51 | 81.52 | 89.08 | 96.42 | 90.24 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.22
= 86.51
ESAB Corp's days of inventory on hand (DOH) has exhibited some fluctuations over the past five years. The trend shows a slight increase from 90.24 days as of December 31, 2020, to 96.42 days by December 31, 2021. However, there was a subsequent decrease to 89.08 days by December 31, 2022, followed by a further decline to 81.52 days as of December 31, 2023. The most recent data point as of December 31, 2024, indicates an increase to 86.51 days.
The decrease in DOH from 2021 to 2023 suggests that ESAB Corp has been managing its inventory more efficiently, potentially through better inventory management practices, sales strategies, or supply chain optimization. However, the uptick in 2024 may warrant further investigation to understand the factors contributing to this change and assess if it aligns with the company's overall inventory management objectives.
Overall, ESAB Corp's DOH trend indicates fluctuations in the efficiency of inventory management over the analyzed period, highlighting the importance of continuous monitoring and adjustment to optimize working capital and operational performance.
Peer comparison
Dec 31, 2024