Eaton Corporation PLC (ETN)
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 | 3.64 | 3.64 | 3.78 | 3.82 | 3.92 | 3.93 | 3.93 | 3.94 | 4.04 | 3.95 | 3.87 | 4.03 | 4.48 | 4.73 | 4.86 | 5.12 | 5.88 | 6.10 | 6.20 | 6.00 | |
| DOH | days | 100.34 | 100.39 | 96.59 | 95.52 | 93.12 | 92.97 | 92.78 | 92.66 | 90.29 | 92.38 | 94.27 | 90.50 | 81.52 | 77.22 | 75.15 | 71.25 | 62.04 | 59.83 | 58.91 | 60.87 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.64
= 100.34
Eaton Corporation PLC's days of inventory on hand (DOH) have shown a gradual increase over the past few quarters, starting at around 60 days and reaching approximately 100 days by the end of 2024. This upward trend indicates that the company is holding inventory for a longer period before it is sold.
A higher DOH can suggest potential inefficiencies in inventory management, as it may indicate overstocking or slow-moving inventory. This could tie up working capital and potentially lead to increased storage costs or obsolescence risk.
It is important for Eaton Corporation PLC to closely monitor its inventory levels and ensure they are in line with sales demand to optimize its working capital efficiency. Regular review of inventory turnover ratios and supply chain processes can help the company manage its inventory levels effectively.
Peer comparison
Dec 31, 2024
See also:
Eaton Corporation PLC Average Inventory Processing Period (Quarterly Data)