International Business Machines (IBM)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 23.74 | 17.94 | 15.69 | 13.42 | 16.17 | |
| DOH | days | 15.38 | 20.35 | 23.27 | 27.20 | 22.57 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 23.74
= 15.38
To analyze International Business Machines Corp.'s days of inventory on hand (DOH) over the past five years, we observe a fluctuating trend. The DOH is a measure of how many days it takes for a company to sell its inventory.
In 2023, the DOH decreased to 15.38 days from 20.35 days in 2022, indicating that IBM managed its inventory more efficiently, selling its products faster. This could be a positive sign of effective inventory management.
Compared to 2021, where the DOH was 23.28 days, the decrease in 2023 suggests IBM was more effective in managing its inventory levels and turnover, reducing the number of days needed to sell its inventory.
The DOH of 15.38 days in 2023 is also lower than the DOH in 2020 (17.64 days) and 2019 (14.53 days). This indicates improvements in IBM's inventory management efficiency over the past two years.
Overall, the decreasing trend in DOH over the past five years suggests that International Business Machines Corp. has been managing its inventory effectively, selling its products in fewer days and potentially improving its cash flow and profitability. However, it is essential to consider other factors that may impact inventory management, such as industry trends and demand fluctuations.
Peer comparison
Dec 31, 2023
See also:
International Business Machines Average Inventory Processing Period