International Business Machines (IBM)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 21.10 | 23.74 | 17.94 | 15.69 | 13.42 | |
| DOH | days | 17.30 | 15.38 | 20.35 | 23.27 | 27.20 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 21.10
= 17.30
The Days of Inventory on Hand (DOH) for International Business Machines (IBM) has shown a decreasing trend over the past five years.
As of December 31, 2020, IBM had 27.20 days of inventory on hand, which decreased to 23.27 days by December 31, 2021. This decline continued as the DOH decreased even further to 20.35 days by December 31, 2022, indicating more efficient management of inventory levels.
The downward trend in DOH persisted with the figure dropping to 15.38 days by December 31, 2023, reflecting IBM's efforts to optimize inventory turnover and reduce excess inventory holding costs. However, there was a slight increase in DOH to 17.30 days by December 31, 2024, which may warrant further analysis to understand the reasons behind this change.
Overall, the decreasing trend in DOH over the years suggests that IBM has been effectively managing its inventory levels, potentially improving cash flow and operational efficiency. It is essential for IBM to continue monitoring and optimizing its inventory management practices to ensure optimal utilization of resources and maintain competitive advantage in the market.
Peer comparison
Dec 31, 2024
See also:
International Business Machines Average Inventory Processing Period