Gentex Corporation (GNTX)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.87 | 4.15 | 3.55 | 3.88 | 5.28 | |
| DOH | days | 94.27 | 88.03 | 102.68 | 94.17 | 69.11 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.87
= 94.27
Based on the provided data, Gentex Corporation's days of inventory on hand (DOH) has shown a fluctuating trend over the past five years.
In 2020, the company had 69.11 days of inventory on hand, indicating that on average, it took Gentex 69.11 days to sell its inventory. This metric increased to 94.17 days in 2021, rose further to 102.68 days in 2022, and then decreased to 88.03 days in 2023. Finally, in 2024, the DOH slightly increased to 94.27 days.
The increasing trend from 2020 to 2022 suggests that Gentex may have been experiencing challenges in managing its inventory efficiently during these years, possibly leading to higher carrying costs and potential risks of obsolescence. The decreasing trend from 2022 to 2023 followed by a slight increase in 2024 indicates some improvement in inventory management, as the company was able to reduce the time it takes to sell its inventory.
Overall, Gentex Corporation should continue monitoring its inventory levels closely to optimize its working capital, reduce holding costs, and enhance overall operational efficiency.
Peer comparison
Dec 31, 2024