Gates Industrial Corporation plc (GTES)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 3.03 3.42 3.51 3.13 3.46
DOH days 120.38 106.83 103.97 116.69 105.50

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.03
= 120.38

The days of inventory on hand (DOH) for Gates Industrial Corporation plc has exhibited fluctuations over the past five years. The trend shows an increase from 105.50 days as of December 31, 2020, to 116.69 days by the end of December 31, 2021, indicating a longer period of time required to sell through inventory. However, there was a slight decrease in DOH to 103.97 days as of December 31, 2022, suggesting potential improvements in inventory management efficiency.

Subsequently, the DOH increased to 106.83 days by December 31, 2023, before experiencing a more significant uptick to 120.38 days by December 31, 2024. This rise in DOH may signal challenges such as overstocking or slower inventory turnover, which could potentially lead to increased carrying costs and reduced liquidity.

Overall, the analysis of Gates Industrial Corporation plc's DOH highlights the importance of closely monitoring inventory management practices to ensure optimal efficiency and profitability.