ESAB Corp (ESAB)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.26 | 4.15 | 4.14 | 4.38 | 4.51 | 4.14 | 3.90 | 3.84 | 4.10 | 3.76 | 3.52 | 3.56 | 3.79 | |
| DOH | days | 85.73 | 88.01 | 88.22 | 83.32 | 80.97 | 88.08 | 93.63 | 95.09 | 89.08 | 97.04 | 103.70 | 102.61 | 96.42 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.26
= 85.73
The days of inventory on hand (DOH) for ESAB Corp, a measure of how many days it takes for the company to turn its inventory into sales, has shown fluctuating trends over the reported periods.
Starting at 96.42 days on December 31, 2021, the DOH increased to 102.61 days by March 31, 2022. Subsequently, there was a further increase to 103.70 days by June 30, 2022. However, the trend reversed as the DOH decreased to 97.04 days by September 30, 2022.
Continuing the declining trend, the DOH decreased to 89.08 days by December 31, 2022, and further decreased to 80.97 days by the end of December 2023. The downward trend continued into the first half of 2024, with a further drop to 83.32 days by March 31, 2024. However, the DOH increased slightly to 88.22 days by June 30, 2024, before modestly dropping to 85.73 days by the end of December 31, 2024.
Overall, the decreasing trend in the DOH from December 31, 2022, to December 31, 2024, indicates that ESAB Corp improved its efficiency in managing its inventory levels and turned its inventory into sales at a quicker pace during this period. A lower DOH typically signifies better inventory management and liquidity, but further analysis and comparison with industry benchmarks would provide a clearer assessment of ESAB Corp's performance in this area.
Peer comparison
Dec 31, 2024