H B Fuller Company (FUL)
Days of inventory on hand (DOH)
| Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.66 | 5.66 | 5.43 | 6.29 | 6.20 | |
| DOH | days | 64.49 | 64.44 | 67.28 | 58.01 | 58.90 |
December 2, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.66
= 64.49
The days of inventory on hand (DOH) for H.B. Fuller Company has shown some fluctuation over the past five years. In 2023, the DOH increased to 64.49 days from 64.44 days in 2022, indicating a slight increase in the number of days the company holds its inventory. This may suggest that the company is taking longer to sell its inventory, which could tie up more of its working capital.
Comparing 2023 to 2021, we see a decrease in DOH from 67.28 days to 64.49 days. This indicates an improvement in inventory management efficiency as the company is holding its inventory for fewer days before it gets sold. However, the DOH in 2023 is still higher than that of 2020 and 2019, suggesting a longer holding period for inventory compared to those years.
Overall, the trend of DOH for H.B. Fuller Company indicates some variability in inventory management efficiency over the past five years, with potential implications for working capital and operational strategies.