Genuine Parts Co (GPC)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.56 | 4.63 | 4.55 | 4.60 | 5.37 | |
| DOH | days | 80.07 | 78.85 | 80.25 | 79.30 | 68.03 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.56
= 80.07
The days of inventory on hand (DOH) for Genuine Parts Co. have shown some fluctuation over the past five years. The trend indicates that the company has been holding inventory for longer periods of time in recent years.
In 2023, Genuine Parts Co. had an average of 115.34 days of inventory on hand, compared to 112.93 days in 2022 and 116.03 days in 2021. This indicates a slight increase in the number of days it takes for the company to sell its inventory.
While a higher DOH could potentially signal inefficiencies in inventory management, it is important to consider the industry norms and the company's specific operating model. Factors such as seasonality, product complexity, and supply chain dynamics can influence inventory levels.
Overall, Genuine Parts Co. may benefit from evaluating its inventory turnover and implementing strategies to optimize inventory levels to improve cash flow and operational efficiency.