International Business Machines (IBM)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 21.33 | 19.83 | 22.72 | 23.74 | 19.66 | 18.29 | 17.30 | 17.94 | 15.60 | 16.30 | 14.96 | 15.69 | 7.82 | 9.83 | 11.39 | 13.42 | 12.52 | 13.36 | 14.38 | 16.17 | |
| DOH | days | 17.11 | 18.40 | 16.07 | 15.38 | 18.57 | 19.96 | 21.10 | 20.35 | 23.40 | 22.39 | 24.40 | 23.27 | 46.69 | 37.12 | 32.04 | 27.20 | 29.15 | 27.33 | 25.37 | 22.57 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 21.33
= 17.11
International Business Machines' (IBM) Days of Inventory on Hand (DOH) measures the average number of days it takes for the company to sell its inventory. A lower DOH indicates efficient inventory management, while a higher DOH may suggest slower inventory turnover.
Analyzing IBM's DOH over the past few years, the trend shows some fluctuations. From 2019 to 2020, there was a steady increase in DOH, reaching a peak of 46.69 days on September 30, 2021. This significant increase could indicate potential inefficiencies in inventory management or perhaps slower sales.
However, from December 2021 onwards, there was a notable decrease in DOH, reaching as low as 15.38 days on December 31, 2023. This substantial decline suggests improved inventory turnover efficiency. The trend continued to improve with DOH remaining relatively stable around 16-18 days in the following periods.
Overall, IBM's recent trend of decreasing DOH indicates more efficient inventory management, minimizing the time inventory sits idle before being sold. This improvement can positively impact cash flow and profitability by reducing carrying costs and potential obsolescence risks associated with excess inventory.
Peer comparison
Dec 31, 2024
See also:
International Business Machines Average Inventory Processing Period (Quarterly Data)