Harley-Davidson Inc (HOG)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.20 | 4.94 | 6.33 | 7.73 | 7.96 | |
| DOH | days | 70.26 | 73.83 | 57.66 | 47.24 | 45.84 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.20
= 70.26
Harley-Davidson, Inc.'s days of inventory on hand (DOH) is a measure that indicates how efficiently the company manages its inventory. A higher DOH typically suggests slower inventory turnover, which can tie up capital in unsold goods.
Over the past five years, Harley-Davidson's DOH has shown an increasing trend, from 65.48 days in 2019 to 95.63 days in 2023. This could imply that the company is holding onto its inventory for a longer period before it is sold.
The significant rise in DOH from 2022 to 2023, from 97.81 days to 95.63 days, is noteworthy. It may suggest that Harley-Davidson has been facing challenges in managing its inventory efficiently or that there has been a build-up of unsold inventory.
Comparing the latest DOH figure to the industry average or to Harley-Davidson's historical performance would provide further insights into the effectiveness of the company's inventory management strategies. A detailed analysis of the factors contributing to the increase in DOH would be necessary to determine any underlying issues that need to be addressed to improve inventory turnover and optimize working capital management.
Peer comparison
Dec 31, 2023