Hilton Grand Vacations Inc (HGV)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.38 | 0.36 | — | — | — | |
| DOH | days | 962.34 | 1,004.83 | — | — | — |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.38
= 962.34
Hilton Grand Vacations Inc's days of inventory on hand (DOH) has displayed significant fluctuations over the past five years. The DOH was at its lowest in 2019 at 1,623.82 days, indicating the company held inventory for approximately 4.45 years on average. However, in 2020, there was a substantial increase in DOH to 9,776.79 days, suggesting a significant buildup of inventory, potentially leading to liquidity challenges and increased carrying costs.
In 2021, the DOH decreased to 2,200.28 days, reflecting a more efficient management of inventory levels compared to the previous year. Subsequently, in 2022, the DOH further improved to 1,555.91 days, signaling a more effective inventory control strategy. However, in 2023, there was a notable increase in DOH to 2,634.02 days, indicating a potential buildup of inventory once again.
Overall, the fluctuations in Hilton Grand Vacations Inc's DOH highlight the importance of monitoring and optimizing inventory management practices to ensure efficient operations, minimize carrying costs, and maintain adequate liquidity levels. Further analysis of the underlying factors driving these fluctuations would be beneficial for a more comprehensive assessment of the company's inventory management performance.