WW Grainger Inc (GWW)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.23 | 5.88 | 6.24 | 6.43 | 6.39 | |
| DOH | days | 58.55 | 62.12 | 58.54 | 56.75 | 57.12 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.23
= 58.55
The days of inventory on hand (DOH) for W.W. Grainger Inc. has shown some fluctuation over the past five years. In 2023, the company held inventory for an average of 82.86 days, which was lower compared to the previous year's DOH of 87.68 days in 2022. This decrease may indicate that the company managed its inventory more effectively, turning it over more quickly.
Looking back further, W.W. Grainger Inc.'s DOH was slightly lower in 2021 at 82.22 days compared to 2020's 83.68 days, showing a modest improvement in inventory management during that period. In 2019, the company had a DOH of 85.21 days, indicating that the inventory turnover rate was slightly slower compared to the most recent years.
Overall, the trend in W.W. Grainger Inc.'s DOH suggests that the company has been making efforts to optimize its inventory levels and turnover, which can have implications for working capital management and profitability. This metric is crucial for assessing how efficiently the company is managing its inventory and can provide insights into operational efficiency and potential liquidity issues.