Eaton Corporation PLC (ETN)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.64 | 3.90 | 4.04 | 4.48 | 5.88 | |
| DOH | days | 100.35 | 93.63 | 90.30 | 81.52 | 62.04 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.64
= 100.35
To analyze Eaton Corporation PLC's days of inventory on hand (DOH) over the years:
1. The DOH increased from 62.04 days on December 31, 2020, to 81.52 days on December 31, 2021, indicating that the company's inventory was held for a longer period in 2021 compared to 2020.
2. Subsequently, there was a further increase in DOH to 90.30 days on December 31, 2022, and a continued rise to 93.63 days on December 31, 2023, suggesting a trend of increasing inventory holding periods.
3. The trend culminated in a DOH of 100.35 days on December 31, 2024, signifying that Eaton Corporation PLC was holding its inventory for a significantly longer time at the end of 2024 compared to the earlier years in the dataset.
4. The increasing trend in DOH may indicate challenges in managing inventory levels efficiently, potential issues with production planning, or changes in demand patterns impacting the company's inventory turnover.
5. Eaton Corporation PLC may need to review its inventory management strategies to optimize inventory levels, reduce carrying costs, and enhance operational efficiency, considering the extended holding periods observed in the data provided.
Peer comparison
Dec 31, 2024