Generac Holdings Inc (GNRC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.44 | 2.97 | 2.74 | 2.67 | 3.20 | |
| DOH | days | 106.16 | 122.90 | 133.17 | 136.45 | 114.19 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.44
= 106.16
Generac Holdings Inc's days of inventory on hand (DOH) has shown fluctuations over the past five years. The trend indicates an increase in the number of days it takes for the company to sell its inventory.
As of December 31, 2020, Generac had an inventory holding period of 114.19 days, reflecting the time it takes for the company to convert its inventory into sales. By the end of December 31, 2021, this figure increased to 136.45 days, pointing to a slower inventory turnover rate.
The trend continued in subsequent years, with the DOH for December 31, 2022, standing at 133.17 days, December 31, 2023, at 122.90 days, and December 31, 2024, showing a reduction to 106.16 days. Despite the fluctuation, the overall pattern suggests inventory management challenges, as the company may be carrying excess inventory levels relative to its sales.
Generac should focus on optimizing its inventory management practices to improve efficiency and reduce the number of days inventory is held, which can positively impact cash flow and overall financial performance.
Peer comparison
Dec 31, 2024