Graco Inc (GGG)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 2.45 2.36 2.28 2.49 2.78
DOH days 149.07 154.65 160.24 146.32 131.14

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.45
= 149.07

The days of inventory on hand (DOH) for Graco Inc have shown an increasing trend over the past five years. Starting at 131.14 days on December 31, 2020, the DOH increased to 146.32 days by December 31, 2021, and continued to rise to 160.24 days by December 31, 2022. There was a slight decrease in DOH to 154.65 days by December 31, 2023, followed by a further decrease to 149.07 days by December 31, 2024.

A high DOH indicates that Graco Inc is taking longer to sell its inventory, which may tie up funds and increase holding costs. It could also suggest potential issues with inventory management, such as overstocking or slow-moving inventory.

Graco Inc should closely monitor its inventory levels and implement strategies to optimize inventory turnover to ensure efficient use of resources and improve overall financial performance.