Flowserve Corporation (FLS)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.59 | 4.30 | 4.89 | 5.29 | 5.37 | |
| DOH | days | 79.46 | 84.86 | 74.64 | 69.00 | 67.92 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.59
= 79.46
Flowserve Corp.'s days of inventory on hand (DOH) has demonstrated a fluctuating trend over the past five years, ranging from 91.04 days in 2019 to 111.86 days in 2022. The company's inventory turnover efficiency improved in 2021 with a DOH of 99.37 days compared to the previous year. However, in 2022 and 2023, there was an increase in DOH, indicating a potential buildup of inventory or slower inventory turnover, which may require closer monitoring. Overall, a lower DOH is generally preferred as it signifies faster inventory turnover and better management of inventory levels, which can positively impact cash flow and profitability. Further analysis of inventory management practices and demand forecasting strategies may be warranted to optimize inventory levels and improve operational efficiency.
Peer comparison
Dec 31, 2023