WW Grainger Inc (GWW)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.51 | 4.41 | 4.16 | 4.44 | 4.36 | |
| DOH | days | 80.85 | 82.86 | 87.68 | 82.22 | 83.68 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.51
= 80.85
The Days of Inventory on Hand (DOH) for WW Grainger Inc has shown some fluctuations over the past five years. In 2020, the company held inventory for an average of 83.68 days, which decreased slightly to 82.22 days in 2021. However, in 2022, the DOH increased to 87.68 days before dropping to 82.86 days in 2023. The latest data for 2024 indicates a further decrease to 80.85 days.
These fluctuations in DOH suggest that WW Grainger Inc has been managing its inventory levels with some variability over the years. A higher DOH could indicate slower inventory turnover or excess inventory on hand, potentially tying up capital and risking obsolescence. Conversely, a lower DOH could indicate efficient inventory management but might also lead to stockouts if not carefully monitored.
Overall, monitoring the trend in DOH can provide insights into the company's inventory management efficiency and effectiveness in optimizing working capital. Further analysis of the company's operations and industry benchmarks would be necessary to fully evaluate the implications of these fluctuations in Days of Inventory on Hand for WW Grainger Inc.