Hayward Holdings Inc (HAYW)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Inventory turnover | 3.75 | 3.59 | 4.60 | |
| DOH | days | 97.44 | 101.81 | 79.31 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.75
= 97.44
Hayward Holdings Inc's Days of Inventory on Hand (DOH) has shown an increasing trend over the past three years, rising from 114.22 days in 2021 to 152.36 days in 2023. This indicates that the company is taking longer to sell its inventory, which may tie up working capital and increase holding costs.
A higher DOH value could suggest potential issues such as overstocking, obsolete inventory, or slowing demand for the company's products. It is essential for management to monitor and optimize inventory levels to prevent excessive holding costs and potential write-offs.
Further analysis of the reasons behind the increase in DOH, such as changes in sales patterns, production inefficiencies, or supply chain disruptions, would be beneficial to address any underlying issues and improve inventory management practices for Hayward Holdings Inc.
Peer comparison
Dec 31, 2023