Graco Inc (GGG)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.36 | 2.28 | 2.49 | 2.78 | 2.88 | |
| DOH | days | 154.65 | 160.24 | 146.32 | 131.14 | 126.84 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.36
= 154.65
The days of inventory on hand (DOH) for Graco Inc have fluctuated over the last five years. In 2023, the company held inventory for an average of 154.65 days, a slight decrease from 160.24 days in 2022. This indicates that Graco was able to sell its inventory at a slightly faster pace in 2023 compared to the previous year.
Looking further back, in 2021, the DOH was 146.32 days, showing another decrease from the previous year. This trend of decreasing DOH indicates that Graco has been managing its inventory more efficiently over the years.
Comparing to 2020 and 2019, where the DOH was 131.14 days and 126.84 days respectively, we observe a steady increase in the time it takes for Graco to sell its inventory. However, the recent decrease in DOH from 2022 to 2023 suggests that Graco may have improved its inventory management practices.
Overall, the decreasing trend in DOH over the last two years is a positive sign of improved efficiency in inventory management for Graco Inc. An optimal DOH level ensures that the company is not maintaining excess inventory, which can tie up resources and lead to potential obsolescence.
Peer comparison
Dec 31, 2023