Gates Industrial Corporation plc (GTES)
Days of inventory on hand (DOH)
| Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.04 | 3.21 | 3.42 | 3.51 | 3.55 | 3.47 | 3.51 | 3.28 | 3.19 | 3.05 | 3.13 | 3.23 | 3.42 | 3.43 | 3.46 | 3.56 | 3.54 | 3.93 | 4.09 | 3.86 | |
| DOH | days | 120.15 | 113.84 | 106.83 | 103.93 | 102.68 | 105.16 | 103.97 | 111.40 | 114.35 | 119.83 | 116.69 | 113.15 | 106.59 | 106.34 | 105.50 | 102.61 | 103.10 | 92.99 | 89.18 | 94.45 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.04
= 120.15
The days of inventory on hand (DOH) for Gates Industrial Corporation plc have shown some fluctuations over the past few quarters. The DOH ranged from a high of 120.15 days in Jun 2024 to a low of 89.18 days in Sep 2019. The average DOH over this period was approximately 107 days.
A higher DOH indicates that the company is taking longer to sell its inventory, which can tie up capital and increase storage costs. On the other hand, a lower DOH suggests more efficient inventory management but could also point to potential stockouts if demand unexpectedly rises.
It is crucial for Gates Industrial Corporation plc to monitor its DOH closely to strike a balance between maintaining adequate inventory levels to meet customer demand and minimizing holding costs. Analyzing trends in DOH can provide insights into the company's inventory management effectiveness and operational efficiency.
Peer comparison
Jun 30, 2024