Graco Inc (GGG)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.36 | 2.29 | 2.25 | 2.19 | 2.28 | 2.31 | 2.27 | 2.26 | 2.49 | 2.52 | 2.63 | 2.65 | 2.78 | 2.72 | 2.59 | 2.67 | 2.88 | 2.71 | 2.63 | 2.61 | |
| DOH | days | 154.65 | 159.05 | 161.99 | 166.39 | 160.24 | 157.83 | 160.93 | 161.56 | 146.32 | 144.92 | 139.05 | 137.54 | 131.14 | 134.04 | 140.82 | 136.84 | 126.84 | 134.86 | 138.82 | 139.98 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.36
= 154.65
Graco Inc's days of inventory on hand (DOH) has shown fluctuations over the past few periods. The average DOH for the most recent period stood at 160.27 days. This indicates that, on average, Graco holds inventory for approximately 160 days before it is sold.
A rising trend in DOH may suggest inefficiencies in inventory management, leading to higher carrying costs and potential risks of obsolescence. Conversely, a declining trend could indicate improved inventory turnover efficiency and better working capital management.
Comparing the latest DOH figure to historical data, Graco's inventory management has been relatively stable, with occasional fluctuations within a range of 130 to 166 days over the past five years. It is important for the company to monitor and analyze factors impacting inventory levels to optimize working capital and ensure efficient operations.
Peer comparison
Dec 31, 2023