Ford Motor Company (F)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		10.36	8.96	9.07	9.60	10.62	9.87	10.43	9.24	11.23	9.69	9.69	9.89	11.81	12.19	12.79	13.06	14.04	11.26	11.43	11.68
DOH	days	35.24	40.71	40.24	38.01	34.37	36.98	34.98	39.51	32.49	37.66	37.67	36.90	30.90	29.94	28.54	27.95	26.00	32.42	31.95	31.25

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.36
= 35.24

Days of inventory on hand (DOH) measures the average number of days that inventory is held before being sold. A lower number indicates more efficient inventory management and a quicker turnover of inventory.

Looking at the trend for Ford Motor Co., the DOH has fluctuated over the past eight quarters, with values ranging from 37.94 days to 46.74 days. In the most recent quarter, Q4 2023, the DOH was 37.94 days, representing an improvement from the previous quarter.

A decreasing trend in DOH suggests that Ford is effectively managing its inventory levels, possibly through better demand forecasting, efficient production processes, or effective inventory control mechanisms. Conversely, an increasing trend in DOH may indicate excess inventory, slow sales, or potential obsolescence issues.

It is important for Ford to closely monitor its inventory turnover and strive for a balance between maintaining sufficient inventory levels to meet customer demand and minimizing carrying costs associated with excess inventory. Further analysis and comparison with industry benchmarks may provide additional insights into Ford's inventory management efficiency.