Ford Motor Company (F)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 10.37 | 10.62 | 11.22 | 11.84 | 14.11 | |
| DOH | days | 35.18 | 34.36 | 32.54 | 30.83 | 25.88 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.37
= 35.18
The days of inventory on hand (DOH) for Ford Motor Co. have been relatively stable over the five-year period from 2019 to 2023. The trend shows a slight increase in DOH from 29.23 days in 2019 to 38.24 days in 2022, followed by a slight decrease to 37.94 days in 2023.
A higher DOH indicates that Ford is holding onto its inventory for a longer period before selling it, which can tie up working capital and lead to higher holding costs. Conversely, a lower DOH suggests that Ford is selling its inventory more quickly.
The increase in DOH from 2019 to 2022 may signal potential inefficiencies in inventory management or a slowdown in sales, leading to higher inventory levels. The subsequent decrease in 2023 could imply improvements in inventory turnover or a more streamlined supply chain.
Overall, while the variations in DOH are relatively minor, Ford may benefit from closely monitoring and optimizing its inventory management practices to ensure efficient use of resources and enhance profitability.
Peer comparison
Dec 31, 2023