Fluor Corporation (FLR)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | — | — | 13,389.00 | 14.06 | 64.32 | |
| DOH | days | — | — | 0.03 | 25.95 | 5.67 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —
Fluor Corporation's Days of Inventory on Hand (DOH) provides insights into how efficiently the company manages its inventory levels. In 2020, the DOH stood at 5.67 days, indicating that, on average, it took approximately 5.67 days for Fluor to sell or use up its inventory. This relatively low number suggests efficient inventory management.
However, by the end of 2021, the DOH significantly increased to 25.95 days. This jump may indicate potential issues such as overstocking, slowing sales, or inefficient inventory management practices. A higher DOH could tie up more capital in inventory and lead to increased storage costs.
Interestingly, the DOH dropped drastically to just 0.03 days by the end of 2022. Such a low DOH value means that Fluor almost immediately turned its inventory into sales or production, reflecting highly efficient inventory management or possibly a strategic shift in business operations.
The missing data for 2023 and 2024 prevents further analysis of Fluor's recent inventory performance. However, based on the patterns observed in the available data, fluctuations in the DOH warrant closer monitoring to assess inventory management effectiveness and its impact on the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2024