H B Fuller Company (FUL)
Days of inventory on hand (DOH)
| Nov 30, 2024 | Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.36 | 5.66 | 5.66 | 5.43 | 6.29 | |
| DOH | days | 68.07 | 64.49 | 64.44 | 67.28 | 58.01 |
November 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.36
= 68.07
H B Fuller Company's days of inventory on hand (DOH) has shown a generally increasing trend over the past five years, starting at 58.01 days in November 2020 and reaching 68.07 days by November 2024. This indicates that, on average, the company held its inventory for a longer period before selling it over the years mentioned. The increase in DOH may imply slower inventory turnover, possibly due to various factors such as changing demand patterns, production inefficiencies, or challenges in managing inventory levels.
A higher DOH can tie up more of the company's working capital in inventory, potentially leading to increased carrying costs and risks associated with holding excess inventory. It may also suggest a need for the company to review its inventory management practices to optimize efficiency and reduce the risk of obsolescence.
Overall, monitoring the DOH trend is important for H B Fuller Company to ensure effective inventory management, streamline operations, and maintain the balance between having enough stock to meet customer demand while avoiding excessive inventory carrying costs.
Peer comparison
Nov 30, 2024